Loan Calculator
Enter your loan amount, interest rate, and term to see your monthly payment and total cost. AI checks if the loan fits your budget.
Compare Personal Loan Rates in 2 Minutes
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Compare Rates FreeHow Is a Loan Payment Calculated?
Personal loan payments are calculated using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments. Early payments go mostly toward interest; later payments go mostly toward principal. This calculator shows the exact breakdown for each period so you can see how the split changes over time.
What Is a Good Interest Rate for a Personal Loan?
In 2024–2025, average personal loan rates in the US range from 8% to 36%, depending heavily on credit score. Excellent credit (720+) typically gets 8–13%. Good credit (680–719) gets 13–20%. Fair credit (640–679) often sees 20–28%. Below 640, rates can exceed 30%. Credit unions and online lenders often beat big banks by 2–5 percentage points on the same credit profile.
How Much Personal Loan Can I Afford?
A common rule is to keep your total monthly debt payments — including the new loan — below 36% of gross monthly income. For example, if you earn $5,000/month, your maximum total debt payments should be $1,800. If you already pay $800 in rent and car payments, you can comfortably afford up to $1,000/month for a new loan. Our AI insight calculates this for you automatically when you enter your monthly income.
Frequently Asked Questions
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