Personal Loan Calculator — Plan Before You Borrow
A personal loan is an unsecured fixed-rate instalment loan — you borrow a lump sum and repay it in equal monthly payments over a set term. Unlike a mortgage or auto loan, the funds can be used for nearly any purpose: consolidating high-interest debt, financing home improvements, covering medical bills, or funding a major life event.
This calculator uses the standard amortisation formula to compute your exact monthly payment, then builds a full repayment schedule showing how each payment splits between principal and interest over time. Use the affordability panel to check whether the payment fits your budget, and the APR comparison table to understand how your rate affects total cost.
Personal Loan Payment Formula
How APR Affects Total Loan Cost
On a $10,000 personal loan over 5 years, the APR makes a large difference:
| APR | Monthly payment | Total paid | Total interest | Interest ratio |
|---|---|---|---|---|
| 5% | $188.71 | $11,322.74 | $1,322.74 | 13.2% |
| 10% | $212.47 | $12,748.23 | $2,748.23 | 27.5% |
| 15% | $237.90 | $14,274.01 | $4,274.01 | 42.7% |
| 20% | $264.94 | $15,896.61 | $5,896.61 | 59.0% |
| 25% | $294.38 | $17,662.92 | $7,662.92 | 76.6% |
Affordability: The 15% Rule
A widely-used guideline is that total non-mortgage debt payments (credit cards, personal loans, auto loans) should not exceed 15–20% of your monthly take-home pay. For example, if you take home $4,000 per month, your total debt payments should ideally stay below $600–$800.
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