Unsecured Personal Loan Calculator
Monthly payment, total interest, and total cost — unsecured means no collateral, so the APR carries the risk.
Typical personal loans run 2–7 years. Rate depends on credit; this is an estimate, not a lender quote.
This unsecured personal loan calculator returns the monthly payment, total interest, and total cost from the amount, APR, and term. Unsecured means no collateral: the lender's only protection is your credit, which is why the rate spans a wider range than almost any other consumer loan.
APRs from about 7% to 36% are common in the US, and the same $15,000 loan costs $297 a month at 7% and $381 at 18%. Below: the payment math, what each credit tier pays, and the origination fee that turns a quoted rate into the APR you actually pay.
How to calculate a personal loan
- Enter the amount you will actually receive, not the purchase price.
- Enter the APR from the offer, including the origination fee if it is already baked in.
- Set the term. Two to seven years is the normal range.
- $15,000 at 11.5% over 5 years: r = 0.009583 and n = 60, so the payment is $329.89.
- Total cost = 329.89 x 60 = $19,793, which means $4,793 of interest — 32% of the principal.
Example
$15,000 over 5 years: $296.95/month at 6.99%, $329.89 at 11.5%, $380.82 at 17.99%. The gap between the best and worst tier is $5,032 of interest over the life of the loan, which is why shopping the rate matters more than shopping the term.
Personal loan payment formula
M = P x r(1+r)^n / ((1+r)^n - 1), with r = APR / 12 and n = years x 12. Total interest = M x n - P.
How to use this calculator
- Enter the loan amount.
- Enter the APR from the pre-qualification, not the advertised from-rate.
- Set the term in years.
- Compare two offers by changing only the rate: the monthly difference x 12 is what one point of APR costs per year.
What each APR costs on $15,000
Rates above 20% are common below 580 and at lenders that market to thin credit files. At 36% — the cap in many states — the same $15,000 loan costs $9,756 in interest, more than half the principal.
| APR | Monthly payment | Total interest | Typical borrower |
|---|---|---|---|
| 6.99% | $296.95 | $2,817 | Excellent credit (720+), strong income |
| 11.50% | $329.89 | $4,793 | Good credit (660-719) |
| 17.99% | $380.82 | $7,849 | Fair credit (580-659) |
5-year term
Short term or long term?
A 7-year term cuts the payment by 63% against 2 years and raises total interest by 271%. The usual advice — take the shortest term you can afford — is right for a depreciating purchase and wrong for a one-off expense you need to absorb without touching savings.
What is almost never right is taking the longest term and then paying it off early without reading the prepayment terms first.
| Term | Monthly payment | Total interest |
|---|---|---|
| 2 years | $702.60 | $1,863 |
| 3 years | $494.64 | $2,807 |
| 5 years | $329.89 | $4,793 |
| 7 years | $260.80 | $6,907 |
$15,000 at 11.5%
The origination fee is a hidden rate
A 3% origination fee on $15,000 means $450 deducted at closing: you receive $14,550 and repay $15,000 plus interest. On a 5-year loan at 11.5% that moves the effective APR from 11.5% to roughly 13%.
Some lenders charge a flat fee of $200-500, some a percentage, some nothing at all but a higher rate. Compare on APR, which the Truth in Lending Act requires to include most fees — then read the itemised list, because not every fee is in there.
Unsecured vs secured borrowing
An unsecured loan has no collateral. A default damages your credit and can end in a collection suit, but the lender cannot repossess a specific asset.
Secured alternatives price lower because the lender's risk is lower: a home equity loan or HELOC often runs 3-5 points below a personal loan, but the house is the collateral. A 401(k) loan skips the credit check, but you are borrowing from yourself and the balance is due in full if you leave the job.
A 0% balance transfer card beats a personal loan if you can clear the balance inside the promotional window. An auto title loan is the worst option in this list — secured by the car and priced at punishing rates.
Fixed or variable
Most personal loans are fixed-rate, which is why the calculator takes a single APR. Variable-rate personal loans exist and are usually priced off prime: they start lower and rise with the index. Over a 3-5 year loan the fixed version is almost always the better default — you are buying certainty, and the initial discount on a variable loan rarely survives a full tightening cycle.
Common mistakes
- Comparing monthly payments across offers with different terms. Compare total cost at the same term.
- Ignoring the origination fee when comparing a 3% fee at 10% against no fee at 12%.
- Taking a 7-year term for something that will be worth less than the balance in three.
- Missing a payment. The rate penalty on a personal loan is minor next to the credit-score damage, which costs far more on your next mortgage.
FAQ
What is an unsecured personal loan?
A loan with no collateral. The lender approves on credit and income alone, so the rate is higher than a secured loan of the same amount.
What credit score do I need for a personal loan?
Most lenders start around 600-620, and the best advertised rates usually require 720+ plus a debt-to-income ratio under about 40%.
How much can I borrow with a personal loan?
Commonly $1,000 to $50,000, with some lenders going to $100,000. Approval is capped by income and existing debt, not just what you ask for.
Is an 11.5% personal loan rate good?
It is average for good credit (660-719). Excellent credit sees 7-9%; fair credit pays 18-25%.
Is a personal loan better than a credit card?
For a fixed expense repaid over a set period, usually yes: lower rate and a fixed payoff date. For a balance you can clear in a few months, a 0% card wins.
Do personal loans hurt your credit score?
A hard inquiry costs a few points and the new account lowers your average account age. On-time payments then help over time.
Can I pay off a personal loan early?
Usually yes. Check for prepayment penalties — most personal loans have none, but some do.
What is the maximum personal loan term?
Seven years at most lenders, with five the most common. Longer terms exist but are rare and usually priced higher.
Do I need collateral or a cosigner?
No collateral — that is what unsecured means. A cosigner can improve approval odds and the rate if your own credit file is thin.