Personal Loan Payment Calculator
Calculate your personal loan monthly payment, total interest, and full amortization schedule. This calculator uses the standard PMT formula for unsecured fixed-rate loans — no hidden fees, no MIP, no PMI. Just straightforward loan math you can trust.
Amortization Schedule
How Personal Loan Payments Work
A personal loan is a fixed-rate, fixed-term installment loan — you borrow a lump sum and repay it in equal monthly payments over a set period. Unlike a mortgage (which adds PMI, property taxes, and insurance) or an FHA loan (with upfront and annual MIP), a personal loan calculation is refreshingly simple: it's just the loan amount, interest rate, and term, fed into the standard amortization formula.
The Amortization Formula
Your monthly payment is calculated using the same PMT formula found in Excel, Google Sheets, and every financial calculator:
Where P = loan principal, r = monthly interest rate (annual rate / 12), and n = total number of monthly payments.
With each payment, part goes toward interest (calculated on the current balance) and the remainder reduces principal. Early payments are dominated by interest. Over time, the principal portion grows and interest shrinks — the hallmark of amortization.
Worked Example: $10,000 Personal Loan at 12% over 5 Years
Let's walk through a realistic scenario — a $10,000 personal loan at 12% APR (the 2026 average for commercial bank personal loans, per the Federal Reserve G.19 report) over 5 years:
Annual rate = 12% → Monthly r = 0.12 / 12 = 0.01
n = 5 × 12 = 60 months
M = 10,000 × 0.01 × (1.01)60 / ((1.01)60 − 1)
M = 10,000 × 0.01 × 1.8167 / 0.8167
M = $222.44 per month
First payment breakdown: Interest = $10,000 × 0.01 = $100.00. Principal = $222.44 − $100.00 = $122.44. Remaining balance after first payment = $9,877.56.
Last payment breakdown: By month 60, nearly the entire $222.44 goes to principal with just a few dollars of interest on the final small balance.
Total cost: $222.44 × 60 = $13,346 total payment. Total interest = $3,346 (about 33% of the original loan amount).
Personal Loan Rates by Credit Score (2026)
Your credit score is the dominant factor in determining your personal loan rate. Based on Federal Reserve Consumer Credit data (G.19, mid-2026) and CFPB analysis of lender originations:
| Credit Tier | FICO Score | APR Range | $10K/5yr Monthly | Total Interest |
|---|---|---|---|---|
| Excellent | 720+ | 8% – 10% | $203 – $212 | $2,166 – $2,748 |
| Good | 660 – 719 | 10% – 15% | $212 – $238 | $2,748 – $4,274 |
| Fair | 600 – 659 | 15% – 25% | $238 – $293 | $4,274 – $7,607 |
| Poor | Below 600 | 25% – 36% | $293 – $362 | $7,607 – $11,714 |
Sources: Federal Reserve G.19 Consumer Credit (June 2026), CFPB Consumer Credit Trends. Monthly payments calculated using the standard amortization formula for a $10,000 loan over 60 months.
The table illustrates a critical point: the spread between excellent and poor credit on a modest $10,000 loan costs over $9,000 in additional interest. Improving your credit score before applying can save thousands.
Secured vs. Unsecured Personal Loans
This calculator is designed for unsecured personal loans, which represent the vast majority of personal loans issued in the U.S. Unsecured loans require no collateral and are approved based on creditworthiness alone. Secured personal loans (backed by a savings account, CD, or vehicle) typically offer lower rates — sometimes 3-6% lower — because the lender has recourse if you default. However, you risk losing the pledged asset.
When a Personal Loan Makes Financial Sense
A personal loan can be a smart choice when:
- Debt consolidation: You can replace multiple credit card debts (often at 20-30% APR) with a single loan at 10-15% APR, saving substantial interest. Use our Debt Consolidation Calculator to quantify the savings.
- Predictable budgeting: Fixed-rate, fixed-term payments are easier to plan for than revolving credit card balances with variable rates.
- Lower rate than alternatives: If the personal loan rate is meaningfully below your credit card rates, the interest savings are real.
A personal loan is not ideal for discretionary spending (vacations, luxury goods), when you already have significant debt, or when the rate you qualify for is not meaningfully better than your current borrowing cost.
How Extra Payments Save You Money
Every dollar of extra payment goes directly toward reducing your loan principal. Because interest is calculated on the remaining balance, reducing principal early has a compounding benefit. Even $50 extra per month on the $10,000 / 12% / 5-year example saves approximately $420 in interest and pays off the loan 10 months early. Try adjusting the Extra Monthly Payment slider above to see the impact on your specific loan scenario.
Explore our full range of calculators: mortgage calculators, auto loan calculators, and personal loan hub.
Frequently Asked Questions
How is a personal loan monthly payment calculated?
Your personal loan monthly payment is calculated using the standard amortization formula: M = P x r x (1+r)^n / ((1+r)^n - 1), where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This is the same PMT formula used in Excel and Google Sheets — and the same formula that powers this calculator.
What is a typical personal loan interest rate in 2026?
In 2026, personal loan rates vary significantly by credit score. Borrowers with excellent credit (720+ FICO) typically receive 8-10% APR. Good credit (660-719) earns 10-15%. Fair credit (600-659) sees 15-25%. Poor credit (below 600) may face rates from 25% up to the 36% APR cap common among major lenders. The Federal Reserve reports the average commercial bank personal loan rate at approximately 12% as of mid-2026.
How much can I borrow with a personal loan?
Personal loan amounts typically range from $1,000 to $100,000, though most lenders cap unsecured personal loans at $50,000. The maximum you can borrow depends on your credit score, income, debt-to-income ratio, and the lender's specific policies. Prime borrowers can generally access the highest loan amounts, and some lenders offer up to $100,000 for well-qualified applicants.
What is the typical personal loan term length?
Personal loan terms typically range from 12 to 84 months (1 to 7 years). The most common terms are 36 months (3 years) and 60 months (5 years). A shorter term means higher monthly payments but less total interest. A longer term reduces the monthly payment but significantly increases total interest cost. Experiment with our personal loan calculator to find the right term for your budget.
Can I pay off my personal loan early?
Most personal loan lenders allow early repayment without prepayment penalties, but always verify before signing. Making extra payments toward principal can significantly reduce your total interest cost and shorten your repayment timeline. Use the Extra Monthly Payment field in this calculator to model the impact of additional payments on your specific loan.
Secured vs unsecured personal loan: which is better?
An unsecured personal loan requires no collateral but carries higher interest rates. A secured personal loan requires collateral (such as a savings account or CD) but typically offers lower rates. Secured loans are better if you have assets to pledge and want the lowest rate. Unsecured loans are better if you don't want to risk losing collateral. Most personal loans from online lenders are unsecured.
Sources & Methodology
Our rate data, formulas, and educational content draw from these authoritative sources:
- Federal Reserve Statistical Release G.19 — Consumer Credit report with average interest rates for commercial bank personal loans. federalreserve.gov/releases/g19
- CFPB Consumer Credit Trends — Bureau analysis of personal loan origination data, rate distributions, and consumer outcomes. consumerfinance.gov
- Standard Amortization Formula — M = P x r(1+r)^n / ((1+r)^n - 1), verified against CFPB mortgage amortization examples and adapted for personal loan terms of 12-84 months.
Last updated: July 2026. Rate ranges represent typical APRs for borrowers in each credit tier. Individual offers depend on lender underwriting, state regulations, and loan-specific factors.