A Personal Loan Payment Calculator
A personal loan is priced like any other amortising loan: the same formula that sets a mortgage payment sets a personal loan payment. What changes is the term, the rate and how much interest the term adds.
Monthly payment
$322.41
- Total repaid
- $19,344.51
- Total interest
- $4,344.51
- Interest as share of the loan
- 2896.34%
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
Payment = Loan x r / (1 - (1 + r)^-n), where r is APR / 12 and n is months
- Loan
- Amount borrowed
- r
- Monthly rate, the APR divided by twelve
- n
- Number of monthly payments
- Payment
- Fixed monthly instalment
How to check the result by hand
- 1
Note the amount, APR and term
Use the amount you will actually receive, the APR the lender quoted, and the term in months. The APR should include fees.
- 2
Convert the APR to a monthly rate
Divide the APR by twelve. At 10.5% the monthly rate is 0.00875.
- 3
Apply the payment formula
Divide loan times monthly rate by one minus (1 + monthly rate) to the power of minus the number of months. That is the fixed instalment.
- 4
Total the repayment
Multiply the payment by the number of months to get the total repaid, then subtract the loan to isolate the interest.
- 5
Compare offers on total cost
Use the APR and the total interest, not the monthly payment, to compare loans. A lower payment often hides a longer, more expensive term.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate A Personal Loan Payment page.