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Personal Loan Calculator

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Use this loan repayment calculator to work out monthly repayment and interest figures for personal loans, student loans or any other type of credit agreement.

Disclaimer: Whilst every effort has been made in building this tool, we are not to be held liable for any damages or monetary losses arising out of or in connection with the use of it. Full disclaimer. This tool is here purely as a service to you, please use it at your own risk.

Calculating loan repayments

These days, it seems like we're bombarded by advertisements offering us personal loans, and instant credit seems like it's never been so easy and attainable. Personal loans offer you an opportunity to get hold of a lump sum of money upfront, and then gradually pay the money back to the lender. Of course, there are different types of loans and they all carry with them different degrees of risk vs reward and varying rates of interest.

Common reasons for taking out a personal loan in 2020 include:

  • Consolidating debt
  • Paying for a dream wedding
  • Paying medical bills
  • Paying off credit cards
  • Funding home improvements
  • Financing a new car
  • Paying for funeral expenses (sadly becoming more common!)
  • Funding a dream holiday
Personal loan on paper with calculator

Why use this personal loan calculator?

Whatever your reasons for wanting to take out a loan, our personal loan calculator is here to assist you by calculating examples of monthly repayments figures that you might have to make. By providing you with a guide to possible loan repayment figures, you can then feel better informed when you weigh up the risk and reward of taking out a personal loan. There's also a very useful article over at US News discussing different types of loans and where to find the best offers and rates in 2020.

How to calculate personal loan payments

To begin your calculation, enter the amount you are hoping to borrow along with the yearly interest rate and the number of months that you are intending to borrow the money for. If you wish, you can alter the start loan date and include any additional deposits you are making at the beginning, along with any extra fees or balloon payments. Once you click the 'calculate' button, the personal loan calculator will show you:

  • Your regular monthly payment figure
  • The total interest you will pay
  • Your total loan repayment figure
  • Your estimated payoff date

You will also be shown graphs and a monthly repayment schedule of your principal and personal loan interest payments. Should you wish to calculate loan figures without compounding, give the simple interest calculator a try.

Personal loan calculator FAQ

Here are some common questions that you have been asking about our calculator:

What is the effective annual rate?

The effective annual rate is the yearly interest rate that you're paying on a loan, taking into account for the effect of compounding. This loan calculator compounds interest on a monthly basis (the compound interest calculator has multiple options for compounding). We have an article discussing the differences between nominal rates, effective rates and APR.

What is a balloon payment?

A balloon payment is a large, lump-sum payment made at the end of a long-term loan. It is commonly used in car finance loans as a way of reducing monthly repayment figures. More information about balloon payments is available in our article, What is a balloon payment?

What is APR?

APR stands for Annual Percentage Rate and is an important factor in determining the overall cost of a personal loan. You can use APR to compare different loan offers. When you arrange a loan with a finance company, their offer can include extra fees associated with the loan. The APR figure takes that information into account, giving you a simple percentage interest rate to allow you to compare and shop around.

Why is the loan repayment interest % different to the APR?

The pie chart shown with your personal loan calculator results displays the total interest as a percentage of the total amount paid back. The APR or Effective Annual Rate represents the yearly interest rate.

Loan calculator formula

The loan calculator featured on this page uses the following formula to calculate repayment figures:

Monthly payment = [ r + r / ( (1+r) ^ months -1) ] x principal loan amount

Where: r = decimal rate / 12.

Loan repayment example

For repaying a loan of $1000 at 5% interest for 12 months, the equation would be:

Monthly payment = [ (0.05 / 12) + (0.05 / 12) / ( (1+ (0.05 / 12)) ^ 12 -1) ] x principal loan amount
Monthly payment = [ 0.0041666667 + 0.0041666667 / (1.0041666667 ^ 12 - 1)] x 1000.
Monthly payment = [ 0.0041666667 + 0.0041666667 / (1.0511618983 - 1)] x 1000.
Monthly payment = [ 0.0041666667 + 0.0041666667 / 0.0511618983] x 1000.
Monthly payment = [ 0.0041666667 + 0.081440816] x 1000.
Monthly payment = 0.085607483 x 1000.
Monthly payment = $85.607483.

If you have any problems using my loan calculator tool, or any suggestions, please contact me.