💰 Financial
Personal Loan Calculator
Calculate the monthly payments and total interest for an unsecured personal loan. See how different interest rates and loan terms affect your repayment schedule.
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Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1]M- Monthly payment
P- Principal personal loan amount
r- Monthly interest rate
n- Total number of months
Example
Personal Loan for Home Improvement
Taking out a $15,000 personal loan at 11% interest for 3 years.
- Identify loan parameters: P = $15,000, Annual Rate = 11%, Term = 3 years.
- Convert to monthly values: r = 0.11 / 12 = 0.00916, n = 36 months.
- Apply the amortization formula.
- Result: The monthly payment is $491.08, and total interest paid will be $2,678.96.
Frequently Asked Questions
An unsecured loan does not require collateral (like a house or car). Because the lender takes on more risk, interest rates are typically higher than secured loans.
Many personal loans include an origination fee (usually 1% to 8% of the loan amount), which is either deducted from your loan payout or added to your balance.
Most modern personal loans do not have prepayment penalties, meaning you can save on interest by paying the balance off early, but always check your loan agreement to be sure.