Personal Loan Calculator

Q: What is a personal loan and how does it work?

A personal loan is an unsecured installment loan with a fixed rate and fixed monthly payments over a set term (typically 2-7 years). You receive a lump sum, then repay in equal monthly installments. Most personal loans range from $1,000 to $50,000. Common uses: debt consolidation, home improvement, medical bills, and major purchases.

Q: What is an origination fee and how does it affect my loan?

An origination fee is a one-time charge (typically 1-8% of the loan amount) deducted from your loan proceeds. If you borrow $15,000 with a 3% fee, you receive $14,550 but repay the full $15,000 plus interest. This increases your effective APR. Always compare effective APR, not just the stated rate.

Q: What credit score do I need for a personal loan?

Most lenders require 580-640 minimum, but rates vary dramatically. Excellent credit (720+) gets 8.5-10.5% APR in 2026, while poor credit (<640) faces 22-30%. A 710 vs 640 score on a $15,000 loan can mean $4,000+ in extra interest.

Q: How does debt-to-income ratio affect my personal loan approval?

Debt-to-income (DTI) is your total monthly debt payments divided by gross monthly income. Most personal loan lenders cap DTI at 36-40%. If your DTI is already above 35%, consider paying down existing debts before applying.

Q: Should I get a personal loan from a bank, credit union, or online lender?

Credit unions typically offer the lowest rates (1-2% below banks) but require membership. Banks offer convenience and no origination fees but stricter approval. Online lenders are fastest but often charge origination fees (1-8%). Check your credit union first, then compare 2-3 online lenders.

Calculate your monthly payment, see if you qualify, and compare bank vs credit union vs online lender. Rates by credit tier, origination fees, and effective APR included.

Calculate your monthly payment, total interest, and effective APR

Loan amount

Average personal loan: $8K–$12K

Interest rate (APR)

Avg for 700 FICO: ~11.5% (March 2026)

Loan term

Origination fee

Range 1–8%, avg 3–6% (deducted from proceeds)

Monthly income (for affordability)

Optional: see payment as % of income

Try another scenario

How to Use This Calculator

Loan Payment tab

The default tab. Enter your loan amount, interest rate (APR), and loan term (3–7 years). The calculator shows your monthly payment, total interest, and total cost. Expand "More options" to add an origination fee (deducted from proceeds) and see the effective APR. Enter your monthly income to see an affordability check. Toggle the amortization summary to see a year-by-year breakdown of principal vs interest.

Can I Qualify? tab

Enter your annual income, monthly debts, and credit score tier. The calculator estimates your rate range by credit tier, calculates the maximum loan you can afford at a 36% debt-to-income ratio, and gives a pre-qualification likelihood (high/medium/low). Expand "More options" for employment type and existing personal loans.

Compare Lenders tab

Enter your loan amount and credit tier to see a side-by-side comparison of bank, credit union, and online lender options. Each shows monthly payment, total interest, total cost, origination fee (if applicable), and effective APR. The cheapest option is highlighted.

Share your result

Every input is encoded in the URL. Click Share to send your exact scenario to a partner, co-signer, or financial advisor.

The Formula

Personal loan payments use the standard amortization formula:

PMT = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Where:
P = loan principal (amount borrowed)
r = monthly interest rate (APR ÷ 12 ÷ 100)
n = total number of monthly payments (term in years × 12)

Total Interest = (PMT × n) − P
Total Cost = PMT × n + Origination Fee

Effective APR (with origination fee):
Solve for r_eff where: (P − Fee) × r_eff × (1 + r_eff)ⁿ / ((1 + r_eff)ⁿ − 1) = PMT

The key insight: origination fees increase your effective APR because you receive less money but repay the full amount. A 3% origination fee on an 11.5% loan pushes the effective APR to ~12.7%. Always compare effective APR, not just the stated rate.

Example

Jessica — Marketing Manager, 32, Denver CO

Jessica needs $15,000 for debt consolidation. She has a 710 credit score (good tier), earning $65K/yr. She qualifies for 11.5% APR over 5 years through an online lender that charges a 3% origination fee ($450).

Loan Payment tab

Loan amount$15,000

Interest rate11.5%

Term5 years (60 months)

Monthly payment$330

Total interest$4,797

Origination fee (3%)$450

Net proceeds received$14,550

Effective APR12.7%

Total all-in cost$20,247

Jessica pays $330/month. With the origination fee, her effective APR is 12.7% — not the 11.5% advertised. She only receives $14,550 in her account. Total cost including interest and fee: $20,247.

Compare Lenders tab

Bank (12% APR, no fee)$334/mo, $20,024 total

Credit Union (10.5%, no fee)$323/mo, $19,354 total

Online (11.5%, 3% fee)$330/mo, $20,247 total

The credit union saves Jessica $893 vs the online lender — lower rate and no origination fee. Worth checking membership eligibility.

Personal Loan Rates by Credit Tier (March 2026)

Credit Tier	Score Range	Rate Range	Monthly PMT ($15K, 5yr)	Total Interest
Excellent	720+	8.5% – 10.5%	$307 – $323	$3,398 – $4,355
Good	680 – 719	11% – 14%	$327 – $349	$4,605 – $5,963
Fair	640 – 679	15% – 20%	$357 – $396	$6,400 – $8,791
Poor	<640	22% – 30%	$413 – $470	$9,778 – $13,174

Sources: Bankrate, LendingTree, Federal Reserve. Rates are averages and vary by lender, income, and DTI.

FAQ

What is a personal loan and how does it work? ▼

A personal loan is an unsecured installment loan with a fixed rate and fixed monthly payments over a set term (typically 2–7 years). You receive a lump sum, then repay in equal monthly installments. Unlike credit cards, the rate is fixed and the payoff date is guaranteed. Most personal loans range from $1,000 to $50,000. Common uses: debt consolidation, home improvement, medical bills, and major purchases.

What is an origination fee and how does it affect my loan? ▼

An origination fee is a one-time charge (typically 1–8% of the loan amount) that the lender deducts from your loan proceeds. If you borrow $15,000 with a 3% origination fee, you receive $14,550 but repay the full $15,000 plus interest. This increases your effective APR. Not all lenders charge origination fees — banks and credit unions often don’t, while online lenders typically do. Always compare the effective APR (which includes the fee), not just the stated rate.

What credit score do I need for a personal loan? ▼

Most lenders require a minimum score of 580–640, but rates vary dramatically by tier. Excellent credit (720+) gets 8.5–10.5% APR in 2026, while poor credit (<640) faces 22–30%. A 710 vs 640 score on a $15,000 loan can mean $4,000+ in extra interest. Before applying, check your score for free (Credit Karma, your bank), dispute errors, and pay down credit card balances to improve your debt-to-income ratio.

How does debt-to-income ratio affect my personal loan approval? ▼

Debt-to-income (DTI) is your total monthly debt payments divided by gross monthly income. Most personal loan lenders cap DTI at 36–40%. For example, with $5,400/month income and $800 in debts, your current DTI is 15%. Adding a $330 loan payment brings it to 21% — well within limits. If your DTI is already above 35%, consider paying down existing debts before applying. The “Can I Qualify?” tab calculates your max loan at 36% DTI.

Should I get a personal loan from a bank, credit union, or online lender? ▼

Credit unions typically offer the lowest rates (1–2% below banks) but require membership. Banks offer convenience and no origination fees but may have stricter approval. Online lenders are fastest (same-day funding) and accept lower credit scores, but often charge origination fees (1–8%). For best results: check your credit union first, then compare 2–3 online lenders. Pre-qualification with a soft pull won’t hurt your score. Use the “Compare Lenders” tab to see the total cost difference.

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