Personal Loan Calculator
Calculate payments, analyze affordability with DTI ratios, and make informed borrowing decisions
Personal Loan Calculator
Calculate payments and costs for personal loans
Loan Details
Affordability Check
Used to calculate your Debt-to-Income (DTI) ratio
Monthly Payment
Estimated monthly payment
Total Interest
Over life of loan
Affordability
DTI: 0.0% (Excellent)
Payment Breakdown
Debt-to-Income (DTI) Analysis
How affordable is this loan for you?
Excellent - Total monthly debt: $500
Fee Impact
💡 The effective APR includes the impact of the origination fee, showing the true cost of borrowing.
Credit Score Impact
How personal loans affect your credit score
- • Pay all bills on time (most important!)
- • Reduce credit card balances below 30% of limits
- • Don't close old credit cards (hurts average age)
- • Limit new credit applications
- • Consider a co-signer with better credit
Loan Term Comparison
See how different loan terms affect your monthly payment and total interest
Total Cost Breakdown
Loan Balance Over Time
Amortization Schedule
📚 Learn More About Personal Loans
💳 Personal Loan Basics
Personal loans are unsecured (no collateral), fixed-rate installment loans. You borrow a lump sum and repay in equal monthly payments over 2-7 years.
Example: $10,000 loan at 10% APR for 3 years = $323/month, $1,616 total interest.
🏦 When to Use Personal Loans
- Debt Consolidation: Combine high-interest credit cards (18-25%) into one lower-rate loan (8-15%)
- Home Improvement: Renovations without tapping home equity
- Medical Bills: Better than medical credit cards
- Major Purchases: Weddings, moving, emergencies
📊 Credit Score Impact
Your credit score determines your APR. On a $15,000 loan for 5 years:
- Excellent (720+): 8% APR = $304/mo
- Good (680-719): 12% APR = $334/mo
- Fair (640-679): 18% APR = $380/mo
- Poor (<640): 25%+ APR = $438/mo
💰 Loan Comparison
Fixed rate, fixed term, no collateral. APR: 6-36%
Variable rate, revolving. APR: 18-30%
Variable rate, uses home as collateral. APR: 7-12%
⚠️ Common Mistakes
- Not shopping around (rates vary 5-10% between lenders)
- Ignoring origination fees (1-8% of loan amount)
- Borrowing more than needed (pay interest on unused funds)
- Not checking credit score first (improve it to get better rates)
- Using for depreciating assets (cars, vacations)
✅ Best Practices
- Check credit score before applying
- Compare APR from 3+ lenders (banks, credit unions, online)
- Read fine print for origination fees and prepayment penalties
- Keep DTI ratio below 36%
- Borrow only what you need
- Set up autopay to avoid missed payments
How to Use This Personal Loan Calculator
Enter Loan Details
Input loan amount, interest rate (APR), and loan term (12-84 months).
Add Income & Debts
Enter your monthly income and existing debt payments to calculate your DTI ratio.
Review & Compare
Check if your DTI is under 36%, view total interest, and compare different loan amounts and terms.
Frequently Asked Questions
What credit score do I need for a personal loan?
Most lenders require a minimum credit score of 580-600, but you'll get the best rates with 720+. Excellent credit (720+): 6-10% APR. Good credit (680-719): 10-15% APR. Fair credit (640-679): 15-25% APR. Poor credit (<640): 25-36% APR or may not qualify. Check your score before applying and work to improve it if needed—even a 20-point increase can save hundreds in interest.
How do personal loans affect my credit score?
Applying causes a hard inquiry (5-10 point temporary drop). Getting approved adds a new account (slight drop initially). Making on-time payments improves your score over time. Paying off the loan can slightly lower your score temporarily (fewer active accounts), but improves it long-term. Using a personal loan to consolidate credit cards can significantly boost your score by lowering credit utilization.
What is a good APR for a personal loan?
A good APR depends on your credit score. Excellent credit: 6-10% is good. Good credit: 10-15% is reasonable. Fair credit: 15-20% is typical. Anything above 25% is high—consider improving your credit first or exploring alternatives. Credit unions typically offer rates 1-2% lower than banks. Always compare APR (includes fees), not just interest rate. Shop around—rates can vary 5-10% between lenders for the same borrower.
Should I use a personal loan to pay off credit cards?
Yes, if the personal loan APR is lower than your credit card rates (usually 18-30%). On $10,000 debt at 20% credit card APR, you pay $2,000/year in interest. Consolidate to a 10% personal loan and you pay $1,000/year—saving $1,000! Plus, you get a fixed payment and payoff date. However, don't close credit cards after paying them off (hurts credit score), and don't rack up new debt on the cards.