Calculate monthly payments and total interest for personal loans
Typical range: 6% - 36% depending on credit
Monthly Payment
$487.54
for 36 months (3.0 years)
Interest Rate
10.50%
Interest Paid
17.0%
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $487.54 | $356.29 | $131.25 | $14,643.71 |
| 2 | $487.54 | $359.40 | $128.13 | $14,284.31 |
| 3 | $487.54 | $362.55 | $124.99 | $13,921.76 |
| 4 | $487.54 | $365.72 | $121.82 | $13,556.04 |
| 5 | $487.54 | $368.92 | $118.62 | $13,187.12 |
| 6 | $487.54 | $372.15 | $115.39 | $12,814.97 |
| 7 | $487.54 | $375.41 | $112.13 | $12,439.56 |
| 8 | $487.54 | $378.69 | $108.85 | $12,060.87 |
| 9 | $487.54 | $382.00 | $105.53 | $11,678.87 |
| 10 | $487.54 | $385.35 | $102.19 | $11,293.52 |
| 11 | $487.54 | $388.72 | $98.82 | $10,904.80 |
| 12 | $487.54 | $392.12 | $95.42 | $10,512.68 |
| ... 24 more months | ||||
A personal loanis an unsecured loan that can be used for almost any purpose—debt consolidation, home improvements, medical expenses, or major purchases. Unlike mortgages or auto loans, personal loans don't require collateral, which means higher interest rates but more flexibility.
Pro Tip:Shop around! Rates can vary significantly between lenders. Check at least 3-5 lenders. Many offer pre-qualification with soft credit checks that don't affect your score.
Know your score before applying. Even a 20-point difference can mean 1-2% lower rates, saving thousands over the loan term.
Banks, credit unions, and online lenders all offer different rates. Credit unions often have the best rates for members.
Shorter loans have higher monthly payments but much lower total interest. A 36-month loan costs far less than 60 months.
Origination fees (1-8%), prepayment penalties, and late fees add up. Factor these into the total cost when comparing loans.
Payday loans have APRs of 300-400%+. They trap borrowers in debt cycles. Explore credit union loans, payment plans, or assistance programs instead.
Understand all terms before signing. Check for variable rates, prepayment penalties, and what happens if you miss a payment.
Most lenders require a minimum of 580-600, but you'll get much better rates with 690+. Excellent credit (720+) qualifies for the best rates (6-10%). Below 580, you may need a co-signer or secured loan.
Online lenders can approve and fund loans in 1-3 business days. Banks and credit unions typically take 3-7 days. You'll need to provide income verification, ID, and possibly bank statements.
Usually yes, but check for prepayment penalties. Some lenders charge 2-5% of the remaining balance if you pay off early. Many online lenders have no prepayment penalties, which can save you significant interest.
Interest rate is the cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus fees (origination, processing). APR gives a more accurate picture of total cost. Always compare APRs, not just interest rates.
Often yes, if the personal loan rate is lower than your credit card rates (typically 18-25%). You'll save on interest and have one fixed payment. However, avoid running up the credit cards again after paying them off.
Late fees ($25-40), credit score damage (30+ days late), and potential default. After 90-120 days of non-payment, the loan may go to collections. Contact your lender immediately if you're struggling—they may offer hardship programs.