Our personal loan calculator helps you estimate your monthly loan payments and see how additional payments can save you money. Here's how to use it effectively:

What You Need to Know

• Loan Amount: The total amount of money you plan to borrow.
• Interest Rate: The annual interest rate on your personal loan. Personal loans typically have fixed interest rates.
• Loan Term: The number of years you'll take to repay the loan. Personal loan terms usually range from 1 to 10 years.
• Additional Monthly Payment: Any extra amount you plan to pay each month beyond the minimum payment.

How the Calculator Works

The calculator uses the standard loan payment formula to determine your monthly payment:

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]

• M = Monthly payment
• P = Principal loan amount
• i = Monthly interest rate (annual rate divided by 12)
• n = Number of monthly payments (loan term in years multiplied by 12)

For additional payments, the calculator recalculates the loan repayment schedule to show how much faster you can pay off the loan and how much interest you can save.

Understanding Your Results

• Minimum Monthly Payment: The minimum amount you need to pay each month to repay the loan in the specified term.
• Total Monthly Payment: The minimum payment plus any additional payment you plan to make.
• Months to Payoff: How many months it will take to pay off the loan with your additional payments.
• Months Saved: How many months you'll save by making additional payments.
• Total Interest Paid: The total amount of interest you'll pay over the life of the loan with your payment schedule.
• Total Amount Paid: The sum of principal and interest paid over the life of the loan.

Tips for Getting Accurate Results

1. Shop around for the best interest rates based on your credit score.
2. Be realistic about how much extra you can afford to pay each month.
3. Remember that personal loans often have origination fees, which are not included in this calculator.
4. Use the calculator to compare different loan amounts and terms to find the best fit for your budget.
5. Consider how additional payments might affect your overall financial situation.

Common Personal Loan Terms to Know

• Unsecured Loan: A loan that doesn't require collateral.
• Fixed Interest Rate: An interest rate that remains the same throughout the life of the loan.
• Origination Fee: A fee charged by the lender for processing the loan.
• Prepayment Penalty: A fee charged by some lenders if you pay off your loan early.
• Debt Consolidation: Using a personal loan to pay off multiple debts, often with the goal of getting a lower overall interest rate.
• APR (Annual Percentage Rate): The true cost of borrowing, including interest and fees.