Monthly payment, interest, and fee
Enter the amount, APR, and term. Add an origination fee if the lender charges one.
- Loan amount$15,000.00
- Origination fee$600.00
- Money you receive$14,400.00
- Total interest$2,935.73
- Total of all payments$17,935.73
- Effective APR with the fee14.86%
- Total cost of borrowing$3,535.73
How a personal loan payment works
Most personal loans are installment loans: you borrow a lump sum and repay it in equal monthly payments. Each payment covers the month's interest, and the rest reduces what you owe. Early payments are mostly interest.
To see every payment split into interest and principal, use the amortization schedule calculator. To see what extra payments save, try the same tool's extra payments tab.
Origination fees and the real cost
Some lenders charge an origination fee, often shown as a percent of the loan. It is usually subtracted from the money you receive, but you still repay the full amount. On $15,000 with a 4% fee, you get $14,400 and repay $15,000 plus interest.
| Fee | You receive | Effective APR |
|---|---|---|
| 0% | $10,000 | 12.00% |
| 2% | $9,800 | 13.41% |
| 5% | $9,500 | 15.61% |
| 8% | $9,200 | 17.90% |
When you compare lenders, line up the APR, the fee, and the term, then use the Compare two offers tab. A lower rate with a high fee can cost more than a higher rate with no fee.
Payment by APR
| APR | Monthly payment | Total interest |
|---|---|---|
| 8% | $313.36 | $1,281.09 |
| 12% | $332.14 | $1,957.15 |
| 16% | $351.57 | $2,656.53 |
| 20% | $371.64 | $3,378.89 |
| 24% | $392.33 | $4,123.83 |
| 30% | $424.52 | $5,282.57 |
Common mistakes with loans
- Comparing interest rates without fees. The APR on the official disclosure includes certain fees, so compare APR to APR.
- Picking the longest term for the lowest payment. Total interest grows with every added month.
- Borrowing the exact amount you need without counting a fee taken from the funds.
- Using one loan to pay another without checking the new total cost.
If the debt is a credit card, use the credit card payoff calculator. For a vehicle, see the auto loan calculator.
Frequently asked questions
How do I calculate a personal loan payment?
Use the loan formula: amount times the monthly rate, divided by 1 − (1 + rate)^−months. A $15,000 loan at 12% APR for 36 months is $498.21 a month.
What is an origination fee on a loan?
It is a one-time charge for processing the loan, usually a percent of the amount. Lenders often take it out of the funds you receive, so you repay more than you get. A 4% fee on $15,000 is $600.
How do I compare two loan offers?
Compare the total cost of each, meaning interest plus fees over the full term, and the monthly payment. On $15,000, a 12% loan for 36 months with no fee costs $2,935.73, while a 9.5% loan for 48 months with a 3% fee costs $3,538.66.
How do I find the interest rate from a payment?
Use the Find the APR tab with the amount, payment, and number of months. A $10,000 loan repaid at $340 for 36 months works out to an APR of about 13.63%.
Is a longer loan term cheaper?
A longer term lowers the monthly payment but raises total interest. Choose the shortest term that fits your budget.
What APR should I expect on a personal loan?
Rates depend on your credit, income, loan size, and the lender, so no single number fits everyone. The rates here are examples. Prequalify with a few lenders and enter the real APR from each offer.
Sources and review
- Standard fixed-rate amortization formula
- Truth in Lending Act, APR disclosure (name of the rule, check the current text)