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Personal Loan Calculator

Calculate personal loan payments and costs

Monthly Payment

$332

Loan Amount

$10,000

Total Interest

$1,957

Total Cost

$11,957

$
%

Monthly Payment

$332

per month

Total Payment

$11,957

Total Interest

$1,957

APR

12.00%

Loan Amount

$10,000

Principal vs Interest

Principal$10,000
Total Interest$1,957

Frequently Asked Questions

Q

How much will a personal loan cost per month?

Rough estimate: ~$30-35 per $1,000 borrowed for 3 years at 10% APR. A $10,000 loan at 10% for 36 months = ~$323/month, $1,616 total interest. Use our calculator for exact amounts based on your rate and term.

  • Rate matters: 8% vs 15% = $1,000+ difference on $10K loan
  • Term matters: Longer term = lower payment, more interest
  • Origination fee: Some lenders charge 1-8% upfront
  • Compare APR (includes fees) not just interest rate
Loan Amount (10%, 36 mo)Monthly PaymentTotal InterestTotal Paid
$5,000$161$808$5,808
$10,000$323$1,616$11,616
$15,000$484$2,424$17,424
$25,000$806$4,040$29,040
Q

What is a good interest rate for a personal loan?

Rates vary by credit: Excellent (750+): 7-12%. Good (700-749): 12-17%. Fair (650-699): 17-24%. Poor (<650): 24-36%. Online lenders often beat banks. Rate depends on income, debt-to-income, and loan amount too.

  • Compare at least 3-5 lenders before deciding
  • Credit unions often have lower rates
  • Online lenders: SoFi, LightStream, Upgrade, Prosper
  • Prequalify without credit impact to see rates
Credit ScoreTypical Rate$10K Loan (3yr) PaymentTotal Interest
Excellent (750+)7-12%$306-323$1,000-1,600
Good (700-749)12-17%$323-348$1,600-2,500
Fair (650-699)17-24%$348-389$2,500-4,000
Poor (<650)24-36%$389-460$4,000-6,500
Q

What should I use a personal loan for?

Good uses: Debt consolidation (if lower rate), home improvement, emergency expense, medical bills. Bad uses: Vacation, shopping, investments. Only borrow for things that improve your financial situation or are truly necessary.

  • Debt consolidation: Only if you won't run up cards again
  • Medical: Ask about 0% hospital payment plans first
  • Home improvement: May increase home value
  • Never borrow for: Vacations, shopping, gambling
Use CaseGood Idea?Why
Debt consolidationYes, if lower rateSaves interest, simplifies payments
Medical billsMaybeCompare to payment plans, often 0%
Home improvementOften yesAdds value, may be lower rate than CC
EmergencyIf no other optionBetter than credit cards
VacationNoDon't borrow for wants
InvestingNoToo risky, interest may exceed returns
Q

Secured vs unsecured personal loan: What is better?

Unsecured: No collateral, higher rates (7-36%), most common. Secured: Requires collateral (car, savings), lower rates (3-18%), risk losing asset. Choose secured if you have poor credit or need lower rate and can risk the collateral.

  • Secured with savings: Your own money backs loan
  • Secured with car: Title loan (be very careful)
  • Share-secured loans: Credit unions, low rates
  • Default risk: Secured = lose collateral + credit damage
FeatureUnsecured LoanSecured Loan
Collateral requiredNoYes (car, savings, CD)
Typical rates7-36%3-18%
Credit requirementsHigher (650+)Lower (can be 550+)
RiskDamage credit if defaultLose collateral + damage credit
Best forGood credit, no assets to riskLower credit, need lower rate
Q

How do I get approved for a personal loan?

Approval depends on: Credit score (650+ preferred), income, debt-to-income ratio (under 40%), and employment history. Improve odds: Pay down debt, correct credit report errors, provide proof of income, consider a co-signer.

  • Credit score: 650+ for best rates, 580+ for some lenders
  • Income: Lenders verify employment and income
  • DTI ratio: Keep under 40% (all debts ÷ income)
  • Credit history: Longer is better, no recent defaults
  • Co-signer: Can help if your credit is weak
FactorStrong ApplicationWeak Application
Credit score700+<600
DTI ratio<30%>45%
Employment2+ years same jobRecently unemployed
IncomeStable, verifiableIrregular, cash
Q

Is a personal loan better than credit card for debt consolidation?

Usually yes if personal loan rate is lower. Credit cards: 18-26% APR. Personal loans: 7-20% for good credit. Fixed payment = guaranteed payoff date. But: Don't run up credit cards again after consolidating.

  • Personal loan: Fixed rate, fixed payment, fixed payoff date
  • Credit card: Variable rate, minimum payment trap
  • Critical: Cut up or freeze cards after consolidating
  • Balance transfer card: 0% intro rate if excellent credit
$10K DebtCredit Card (22%)Personal Loan (12%)Savings
Monthly payment$250 (min varies)$332-
Payoff time5+ years3 years2+ years faster
Total interest$5,000+$1,900$3,100 savings

Example Calculations

1$10,000 Personal Loan at 12% for 3 Years

Inputs

Loan Amount$10,000
Annual Interest Rate12%
Loan Term36 months

Result

Monthly Payment$332
Total Interest$1,957
Total Cost$11,957

Monthly rate = 12% / 12 = 1%. Using the amortization formula: M = $10,000 × [0.01 × (1.01)^36] / [(1.01)^36 - 1] = $10,000 × 0.01431 / 0.4308 = $332/month. Total paid = $332 × 36 = $11,957. Total interest = $11,957 - $10,000 = $1,957.

2$25,000 Personal Loan at 8% for 5 Years

Inputs

Loan Amount$25,000
Annual Interest Rate8%
Loan Term60 months

Result

Monthly Payment$507
Total Interest$5,415
Total Cost$30,415

Monthly rate = 8% / 12 = 0.6667%. Using the amortization formula: M = $25,000 × [0.006667 × (1.006667)^60] / [(1.006667)^60 - 1] = $25,000 × 0.009932 / 0.4899 = $507/month. Total paid = $507 × 60 = $30,415. Total interest = $30,415 - $25,000 = $5,415.

Formulas Used

Monthly Payment (Amortizing Loan)

M = P × [r(1 + r)^n] / [(1 + r)^n - 1]

Calculates the fixed monthly payment for an amortizing loan.

Where:

M= Monthly payment amount
P= Loan principal (amount borrowed)
r= Monthly interest rate (annual rate / 100 / 12)
n= Total number of monthly payments (loan term in months)

Total Interest Paid

Total Interest = (M × n) - P

The total amount of interest paid over the life of the loan.

Where:

M= Monthly payment
n= Number of payments (months)
P= Original loan principal

Understanding Personal Loans

Personal loans are unsecured loans used for various purposes like debt consolidation, home improvements, or major purchases.

Interest rates depend on credit score, loan amount, and term length.

Shorter loan terms save money on interest but require higher monthly payments.

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Last Updated: Feb 12, 2026

This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.

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