Personal Loan Calculator
Calculate your personal loan monthly payment, total interest, and create a payment schedule. Compare different loan amounts, interest rates, and terms to find the best option for your needs.
Understanding Personal Loans
What is a Personal Loan?
A personal loan is an unsecured loan that you can use for various purposes, including:
- Debt Consolidation: Combine high-interest debts into one lower payment
- Home Improvements: Finance renovations or repairs
- Major Purchases: Buy appliances, furniture, or electronics
- Medical Expenses: Cover unexpected healthcare costs
- Special Events: Fund weddings, vacations, or other occasions
Current Personal Loan Rates
Personal loan rates vary based on credit score and lender:
- Excellent Credit (740+): 6% - 8% APR
- Good Credit (670-739): 10% - 15% APR
- Fair Credit (580-669): 18% - 25% APR
- Poor Credit (Below 580): 28% - 36% APR
Shop around with multiple lenders to find the best rate for your situation.
How to Qualify for Better Rates
Improve your chances of getting a lower interest rate:
- Improve Credit Score: Pay bills on time and reduce debt
- Lower Debt-to-Income: Pay down existing debts first
- Stable Employment: Show consistent income history
- Compare Lenders: Check banks, credit unions, and online lenders
- Consider a Co-signer: May help qualify for better terms
Personal Loan vs. Other Options
Compare personal loans to alternatives:
- Credit Cards: Higher rates (18-25%) but more flexible
- Home Equity Loan: Lower rates (6-8%) but uses home as collateral
- 401(k) Loan: No credit check but reduces retirement savings
- Payday Loans: Avoid - extremely high rates (400%+ APR)
Personal Loan Tips
1. Calculate Total Cost
Look beyond monthly payments. A longer term means lower payments but more total interest paid.
2. Watch for Fees
Origination fees (1-8%) can add significantly to your loan cost. Factor these into comparisons.
3. Avoid Prepayment Penalties
Choose lenders that allow extra payments without fees so you can pay off early and save interest.
4. Borrow Only What You Need
Resist borrowing extra "just in case." Every dollar borrowed costs you in interest.
Frequently Asked Questions
How much can I borrow with a personal loan?
Most personal loans range from $1,000 to $50,000, though some lenders offer up to $100,000. The amount depends on your income, credit score, and debt-to-income ratio.
What credit score do I need for a personal loan?
Most lenders require at least 580-600, but you'll get better rates with 670+. Some lenders specialize in bad credit loans but charge higher rates.
How fast can I get a personal loan?
Online lenders often fund within 1-3 business days after approval. Banks and credit unions may take 5-7 days. Same-day funding is available from some lenders.
Should I get a fixed or variable rate loan?
Fixed rates are more common and recommended for personal loans. Your payment stays the same throughout the loan. Variable rates can increase, making budgeting difficult.
Can I pay off my personal loan early?
Most lenders allow early payoff without penalties. Always verify this before signing. Paying extra each month can save significant interest over the loan term.