Personal Loan Calculator: Estimate Your Payments
Different rates and terms affect the cost of personal loans. Our personal loan calculator will help you see what your monthly payment and total interest costs would be for different loans so you can determine what’s affordable.
It’s important to make sure a personal loan is affordable before you take out your loan. Use our personal loan calculator to see what your total monthly payments and total interest costs would be for any personal loan you’re considering. Simply input your desired loan amount, interest rate, and repayment terms to find out loan costs and see what you can afford.
Why Use a Personal Loan Calculator?
Before you take out any personal loan, though, it’s important to make sure you can work the loan payments into your monthly budget. Otherwise, you could find yourself in a situation where your loan isn’t affordable—which could jeopardize your financial situation and damage your credit.
You can use our personal loan calculator to see what your total monthly payments would be on a loan you’re considering taking out. You can also use the calculator to determine what the maximum affordable interest rate is for you if you take out a loan.
How to Calculate Personal Loan Payments
When using our personal loan calculator, you can tweak each data field in order to get a better understanding of how different interest rates, repayment terms, and loan amounts affect both monthly payments and total repayment cost. This will help you understand how your loan will affect your monthly finances as well as give you some insight into the big picture costs of borrowing.
When you actually apply for a loan, though, the only variables you really have control over are the loan amount and potentially the loan repayment term. The interest rates your lender offers you will be determined by your credit score.
Because you can’t determine how much interest you’ll have to pay, start by entering the amount of money you need into our loan calculator. Then, edit the rates and terms to see the maximum loan rate you can afford and the minimum time frame you would need for repayment.
Remember, a shorter repayment timeline means that your monthly payments will be higher but your total loan costs will be much lower since you’re paying interest for a shorter time. If you’re worried about affordability, you may want to opt for a longer repayment term and then just pay off the loan ahead of schedule if you have the cash to do so.
If you’re using the calculator to see the costs of an actual loan you’re considering and you know the loan terms that you’ve been offered by the lender, remember to use the full annual percentage rate (APR) in the calculator instead of just the interest rate. The APR will include the other costs and fees the lender charges so you get a better idea of total costs.
>> Read More: Interest Rate vs APR: What’s the Difference?
How to Find the Best Rates
Lower interest rates will make your loan more affordable. You can find the best rates by comparing quotes from several of the best personal loan lenders, including online lenders, banks, and credit unions. Get several quotes so you can see which loan offers you the best deal.
Author: Christy Rakoczy
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