How It Works
This calculator uses the same fixed-rate amortization formula lenders use to set equal monthly payments for the life of a loan: each payment covers that month's interest, with the remainder reducing the principal balance.
It works for any loan with a lump-sum amount, a fixed rate, and a fixed term — personal loans, debt consolidation loans, or similar installment loans.
Formula
- M — Monthly payment
- P — Loan amount (principal)
- i — Monthly interest rate (annual rate ÷ 12)
- n — Number of monthly payments
Example
Example inputs: Loan amount $15,000, interest rate 9.5% APR, 48-month term.
Result: Monthly payment: $376.85. Total interest paid: $3,088.66. Total of all payments: $18,088.66.
Frequently Asked Questions
What kinds of loans can I use this for?
Any fixed-rate, fixed-term loan where you borrow a lump sum and repay it in equal monthly installments — personal loans, debt consolidation loans, and similar installment loans. For a mortgage or auto loan, the dedicated calculators add relevant extras like taxes or trade-in value.
Does this include fees?
No. Some personal loans include an origination fee deducted from the amount you receive, which effectively raises your real borrowing cost. Check your loan's APR (not just the interest rate) for a fuller picture, and add any fees separately.
What happens if I pay more than the required monthly payment?
Extra payments reduce your principal faster, which lowers the total interest you'll pay and can shorten the loan term — though this calculator shows the standard fixed-payment schedule, not an accelerated one.
This calculator provides estimates for informational purposes only and should not be considered financial, tax, or legal advice.