What is a good interest rate for a personal loan?

A good personal loan rate depends heavily on your credit score. Borrowers with excellent credit (720+) typically qualify for rates of 6–12% APR. Good credit (680–719) usually sees 12–18% APR, while fair credit (640–679) often lands at 18–28% APR. Rates above 30% APR suggest subprime lending and should be approached cautiously. Always compare offers from at least three lenders before accepting.

What is an origination fee on a personal loan?

An origination fee is a one-time charge that lenders deduct from your loan proceeds at funding. For example, a $10,000 loan with a 3% origination fee means you receive $9,700 but still repay $10,000 plus interest. Origination fees are typically 1–8% of the loan amount. This fee effectively raises your true borrowing cost above the stated APR, which is why calculating effective APR matters.

How is a personal loan monthly payment calculated?

Monthly payment is calculated using the standard amortization formula: M = P × r(1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual APR ÷ 12), and n is the number of months. Each payment covers accrued interest first, with the remainder reducing the principal balance.

Should I choose a shorter or longer loan term?

Shorter terms mean higher monthly payments but significantly less total interest paid. Longer terms lower your monthly payment but increase total interest cost. For example, a $15,000 loan at 12% APR costs $499/month over 36 months ($1,969 total interest) versus $333/month over 60 months ($4,980 total interest). Choose the shortest term whose payment fits comfortably within your budget.

Personal Loan Calculator — Monthly Payment & Total Interest

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Deducted from loan proceeds at funding. Shows effective APR in results.

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Enter your loan details to see
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Year-by-Year Amortization

How your balance, payments, and interest break down each year.

Year	Payments Made	Principal Paid	Interest Paid	Remaining Balance

Same loan amount and APR — three common term lengths side by side.

This calculator provides estimates for educational purposes. Actual loan terms, payments, and APR depend on your credit profile and lender. Always review your loan agreement before signing.