How is a personal loan payment calculated?

Most personal loans use a fixed amortization schedule. The monthly payment is calculated with M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate, and n is the term in months. The same payment applies every month for the full term.

What term lengths are common for personal loans?

Personal loan terms typically run from 12 to 84 months. Shorter terms cost less in total interest but require larger monthly payments. Longer terms are easier on monthly cash flow but cost more over time.

Does APR matter more than the interest rate?

APR is generally more useful for comparing loan offers because it includes origination fees and other charges along with the interest rate. Two loans with the same headline rate can have meaningfully different APRs depending on fees.

Is the information I enter stored anywhere?

All calculations run as JavaScript in your browser. Loan details you enter are not sent to our servers and are not retained between visits.

Personal Loan Calculator

Calculate the monthly payment and total interest on a personal loan. Enter the loan amount, annual interest rate, and term. Personal loans typically have fixed rates and terms between 12 and 84 months. All calculations run locally in your browser.

Loan type

Currency

Loan amount

Interest rate (% per year)

Term

Formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P = loan amount, r = monthly rate, n = months

Monthly payment

$777.66

Total interest: $2,995.60
Total paid: $27,995.60
Loan amount: $25,000.00
Number of payments: 36

Where your money goes over the loan term

Principal

$25,000.00 principal$2,995.60 interest

Calculations are estimates for informational purposes only. Consult a financial professional for advice.

How it works

The monthly payment uses the standard amortization formula M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r the monthly rate (annual rate divided by 12) and n the number of monthly payments. With the starting values, 25,000 at 7.5% over the personal-loan default of 36 months, the payment is 777.66 a month and total interest is 2,995.60.

Processing runs in your browser

Every calculation runs locally in your browser as JavaScript. Our servers are not involved at any point.

Calculations are estimates for informational purposes only. Consult a financial professional for advice.

Frequently asked questions

How is a personal loan payment calculated?: Most personal loans use a fixed amortization schedule. The monthly payment is calculated with M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate, and n is the term in months. The same payment applies every month for the full term.
What term lengths are common for personal loans?: Personal loan terms typically run from 12 to 84 months. Shorter terms cost less in total interest but require larger monthly payments. Longer terms are easier on monthly cash flow but cost more over time.
Does APR matter more than the interest rate?: APR is generally more useful for comparing loan offers because it includes origination fees and other charges along with the interest rate. Two loans with the same headline rate can have meaningfully different APRs depending on fees.
Is the information I enter stored anywhere?: All calculations run as JavaScript in your browser. Loan details you enter are not sent to our servers and are not retained between visits.

Last reviewed September 30, 2026

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