Enter Loan Amount ($), Annual Interest Rate (%) and Loan Term (Years) to review monthly payment with this tool. The payment is based on the principal financed, which may differ from cash received if an origination fee is deducted.
Personal loans use the standard amortization formula to calculate fixed monthly payments. Here's how it works:
The formula:
| Payment # | Payment | Principal | Interest | Balance |
|---|
Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
P = principal, r = periodic interest rate, n = number of payments.The calculation links Loan Amount ($), Annual Interest Rate (%) and Loan Term (Years) to monthly payment. The payment is based on the principal financed, which may differ from cash received if an origination fee is deducted. Compare net proceeds with total repayments.
Enter Loan Amount ($), Annual Interest Rate (%) and Loan Term (Years) to review monthly payment with this tool. The payment is based on the principal financed, which may differ from cash received if an origination fee is deducted.
Estimate payments and total interest for an unsecured installment borrowing scenario. Compare a shorter payoff with a payment that fits the monthly budget.
The payment is based on the principal financed, which may differ from cash received if an origination fee is deducted. Compare net proceeds with total repayments.
Prepare Loan Amount ($), Annual Interest Rate (%) and Loan Term (Years). Use the actual loan amount and fee treatment from a quote rather than assuming the amount borrowed equals the cash delivered.
The payment is based on the principal financed, which may differ from cash received if an origination fee is deducted. Compare net proceeds with total repayments. Actual eligibility, origination charges, variable pricing and early-payment terms depend on the lender. A sample rate is not a credit offer.
Use the full settings in the worked-example table. They produce Monthly Payment: 322.67. Compare the method and units as well as the displayed number.
The displayed relationship is Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1] P = principal, r = periodic interest rate, n = number of payments. Use the actual loan amount and fee treatment from a quote rather than assuming the amount borrowed equals the cash delivered.
Actual eligibility, origination charges, variable pricing and early-payment terms depend on the lender. A sample rate is not a credit offer. For a transaction or account decision, compare the inputs with the applicable statement, contract or official rules.
Worked personal loan calculator example. Set Loan Amount ($) = 10000; Annual Interest Rate (%) = 10; Loan Term (Years) = 3. The corresponding output is Monthly Payment: 322.67. The payment is based on the principal financed, which may differ from cash received if an origination fee is deducted.
Estimate payments and total interest for an unsecured installment borrowing scenario. Compare a shorter payoff with a payment that fits the monthly budget.
Use the actual loan amount and fee treatment from a quote rather than assuming the amount borrowed equals the cash delivered.
| Field | Example value | Entry check |
|---|---|---|
| Loan Amount ($) | 10000 | Use the amount for this scenario in the currency and period shown by the field. |
| Annual Interest Rate (%) | 10 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Loan Term (Years) | 3 | Use the period unit in the field label; months and years are not interchangeable. |
Relationship used for this example: Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1] P = principal, r = periodic interest rate, n = number of payments.
The payment is based on the principal financed, which may differ from cash received if an origination fee is deducted. Compare net proceeds with total repayments.
| Output | Displayed result |
|---|---|
| Monthly Payment | 322.67 |
With these settings, monthly payment is 322.67. Use the same units and calculation mode when reproducing this example.
The payment is based on the principal financed, which may differ from cash received if an origination fee is deducted. Compare net proceeds with total repayments. Actual eligibility, origination charges, variable pricing and early-payment terms depend on the lender. A sample rate is not a credit offer.
Replace the illustrative loan amount ($) value (10000) with your own value, then complete the other inputs for the same scenario. Use the actual loan amount and fee treatment from a quote rather than assuming the amount borrowed equals the cash delivered.