Personal Loan Calculator
Estimate your monthly payments and total interest costs instantly.
Years
Months
Monthly Payment:
Total Repayment:
Total Interest Paid:
How to Use the Personal Loan Calculator
Whether you are planning a home renovation, consolidating high-interest debt, or funding a major life event, understanding the cost of your personal loan is crucial. Our personal loan calculator helps you break down the financial impact of a loan into manageable monthly figures.
Understanding Your Results
When you input your data, the calculator provides three key metrics:
- Monthly Payment: This is the fixed amount you will pay every month for the duration of the loan.
- Total Repayment: The sum of the principal amount you borrowed plus all the interest accrued over the life of the loan.
- Total Interest Paid: The specific cost of borrowing the money, showing how much you pay the lender above the original loan amount.
Factors That Influence Your Personal Loan Rates
Lenders use several criteria to determine the interest rate they offer you. These typically include:
- Credit Score: Borrowers with higher credit scores usually qualify for the lowest interest rates.
- Debt-to-Income (DTI) Ratio: This measures how much of your monthly income goes toward paying off existing debts.
- Loan Term: Shorter terms often have lower interest rates but higher monthly payments, while longer terms have lower monthly payments but higher total interest costs.
Real-World Example
Let's say you borrow $15,000 for a period of 5 years (60 months) at an interest rate of 8%.
Using the calculator, your results would be:
- Monthly Payment: $304.15
- Total Repayment: $18,248.76
- Total Interest Paid: $3,248.76
This illustrates that while the monthly payment is affordable, you will pay over $3,000 in interest over the five-year period.