Personal Loan Calculator

Personal loans are unsecured loans — meaning no collateral like a car or home backs them — that you can use for almost any purpose. Debt consolidation, medical bills, home improvements, moving costs, or handling an unexpected financial emergency are among the most common uses. Because they're unsecured, the interest rate you're offered depends heavily on your credit score and income.

The monthly payment on a personal loan is determined by the amount borrowed, the interest rate, and the repayment term. Personal loan rates typically range from around 7% for borrowers with excellent credit to 35%+ for borrowers with poor credit. Knowing your rate before you borrow is essential — a 12% rate on a $10,000 loan over 5 years results in $3,347 in total interest, while a 24% rate on the same loan costs nearly $7,200 in interest.

One of the most powerful uses of a personal loan is debt consolidation — replacing multiple high-interest debts (especially credit card balances) with a single fixed-rate loan. If your credit cards carry 20-25% interest and you qualify for a personal loan at 12%, consolidating can cut your monthly interest charges significantly and give you a clear payoff date instead of the revolving cycle of minimum payments.

Unlike credit cards, personal loans have fixed terms and fixed monthly payments. This predictability makes budgeting easier and creates accountability: you know exactly when you'll be debt-free. The discipline of a fixed payment schedule is one reason personal loans are often more effective for debt payoff than credit cards, even when the rates are similar.

Before applying, check your credit score and compare offers from multiple lenders — banks, credit unions, and online lenders. Even a 2-3% improvement in rate can save hundreds of dollars over the loan term. Pre-qualification checks at most lenders use a soft credit inquiry that won't affect your score, so comparing offers costs you nothing.