Estimate your monthly payments and total interest costs instantly.
Calculation Summary
Monthly Payment:
$0.00
Total Interest:
$0.00
Total Principal:
$0.00
Total Cost:
$0.00
Understanding Your Personal Loan Repayments
Choosing a personal loan is a major financial decision. Whether you are consolidating debt, funding a home renovation, or covering an unexpected expense, knowing your monthly obligations is critical for maintaining a healthy budget. This Personal Loan Repayment Calculator helps you break down the math behind your borrowing.
How are Personal Loan Payments Calculated?
Most personal loans are "amortized." This means that each month, you pay a fixed amount. In the beginning of the term, a larger portion of your payment goes toward interest. As time passes, more of your payment is applied to the principal balance. The formula used is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
M: Total monthly payment
P: Principal loan amount
i: Monthly interest rate (Annual rate divided by 12)
n: Number of months (Years multiplied by 12)
Key Factors Influencing Your Loan Cost
Credit Score: Generally, the higher your score, the lower the interest rate lenders will offer.
Loan Term: Longer terms (e.g., 5 years) lower your monthly payment but increase the total interest you pay over the life of the loan.
Fees: Be aware of origination fees, which are often deducted from the loan proceeds before you receive the money.
Practical Example
If you borrow $10,000 at a 10% interest rate for 3 years, your monthly payment would be approximately $322.67. Over the life of the loan, you would pay a total of $11,616.12, meaning the loan cost you $1,616.12 in interest charges.
function calculateLoan() {
var principal = parseFloat(document.getElementById('loanAmount').value);
var annualRate = parseFloat(document.getElementById('interestRate').value);
var years = parseFloat(document.getElementById('loanTerm').value);
var fee = parseFloat(document.getElementById('originationFee').value) || 0;
if (isNaN(principal) || isNaN(annualRate) || isNaN(years) || principal <= 0 || annualRate < 0 || years <= 0) {
alert("Please enter valid positive numbers for Loan Amount, Interest Rate, and Term.");
return;
}
var monthlyRate = annualRate / 100 / 12;
var numberOfPayments = years * 12;
var monthlyPayment = 0;
// Check if interest rate is 0 to avoid division by zero
if (annualRate === 0) {
monthlyPayment = principal / numberOfPayments;
} else {
var x = Math.pow(1 + monthlyRate, numberOfPayments);
monthlyPayment = (principal * monthlyRate * x) / (x – 1);
}
var totalRepayment = monthlyPayment * numberOfPayments;
var totalInterest = totalRepayment – principal;
var grandTotal = totalRepayment + fee;
document.getElementById('monthlyPayment').innerText = '$' + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalInterest').innerText = '$' + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalPrincipal').innerText = '$' + principal.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalCost').innerText = '$' + grandTotal.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resultArea').style.display = 'block';
}