Personal Loan Calculator
See the monthly payment, total interest, and payoff time on a personal loan, and how much extra payments save.
Want to understand the concept, not just the number? Read Debt Snowball vs Avalanche .
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $2,381 | $1,532 | $12,619 |
| 2 | $2,657 | $1,257 | $9,962 |
| 3 | $2,964 | $949 | $6,997 |
| 4 | $3,307 | $606 | $3,690 |
| 5 | $3,690 | $224 | $0 |
How it's calculated
A personal loan is a fixed, unsecured loan you pay back in equal monthly installments. Each payment covers the interest on the remaining balance first, and whatever is left reduces the principal. Because the balance falls a little every month, later payments chip away at the principal faster than early ones.
Take the default. A $15,000 loan at 11 percent over 5 years costs $326.14 a month. Over the full term you pay $19,568.18, of which $4,568.18 is interest. The rate and the term drive that interest more than the loan size does, so a lower rate or a shorter term saves real money.
Adding even a small extra payment shortens the loan and cuts the interest, because every extra dollar of principal removes all the future interest that dollar would have carried. Use the extra payment field to see how much time and interest you can save.
Assumptions
- A fixed rate for the full term, compounded monthly, with equal payments.
- Any extra payment goes entirely to principal and starts with the first payment.
Last updated: 2026-08-08
These assumptions follow our general methodology.
Frequently asked questions
How is a personal loan payment calculated?
It is a standard amortized payment. The formula spreads the loan plus interest into equal monthly amounts over the term, so the payment stays level while the split between interest and principal shifts over time.
Does a shorter term save money?
Yes. A shorter term raises the monthly payment but lowers the total interest, because the balance is paid down faster and spends less time accruing interest. Try a few terms to see the trade.
Should I make extra payments?
If your loan has no prepayment penalty, extra payments cut both the payoff time and the total interest. Every extra dollar goes to principal and removes the future interest on it. This calculator shows the savings.
How is this different from a credit card?
A personal loan has a fixed rate, fixed term, and fixed payment, so it pays off on a set date. A credit card is revolving with a variable rate and a minimum payment that can stretch the balance out for years. The Credit Card Payoff calculator covers that case.