Loan Calculator: Personal Loan & Debt Consolidation
Work out your monthly payment, total interest and total repayment on any fixed-rate loan — plus the effective APR after origination fees, and your savings from consolidating credit card debt.
Amortization Trajectory (Principal Balance vs Time)
Loan Health Audit
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Complete Amortization Ledger 36 Monthly Periods
Interest, principal and remaining balance for every period.
| Period / Year | Starting Balance | Scheduled Payment | Principal Paid | Interest Paid | Cumulative Interest | Ending Balance |
|---|
The True Cost of Origination Fees
Origination fees — commonly about 1%–10% of the loan — are charged by many personal-loan lenders when the loan is funded, usually by reducing the cash you receive.
Personal Loan vs Credit Card Consolidation Guardrails
Rolling card balances into an installment loan swaps open-ended minimum payments for a fixed payoff date. It only works if the cards don't fill back up.
How this calculator works
This uses the same amortization formula banks use for personal, auto, and business loans. See also the Amortization Calculator and Student Loan Calculator.
M = P × [ i(1+i)^n ] / [ (1+i)^n − 1 ] — M = monthly payment · P = loan amount · i = monthly interest rate · n = number of months
By Suhaib Hassan · Formula verified 27 Sep 2026; worked examples re-run 16 Oct 2026 · How CalculatePilot verifies formulas →
How loan term affects total cost
A longer term lowers your monthly payment but increases total interest. A shorter term raises the monthly payment but reduces total interest significantly.
Origination fees and APR — the real cost of a loan
Many personal, business, and some auto loans charge an origination fee — typically 1–10% of the loan amount — deducted from your proceeds before the money reaches you. This is the single biggest reason two loans with the same "interest rate" can cost very differently.
Example: a 20,000 loan with a 5% origination fee only puts 19,000 in your account, but you still repay the full 20,000 plus interest. Your effective APR is higher than the stated rate.
Rule of thumb: if you need a specific amount in hand, borrow enough to cover the fee — divide your target amount by (1 minus the fee percentage). The "roll fee into the loan balance" option above does this for you.
Prepayment penalties are separate from origination fees and appear in the loan agreement, not this calculator. Some lenders charge for paying off early; most personal loans do not, but always check before assuming.
A worked example
A $20,000 loan at 7.5% costs about $401/month over 60 months with roughly $4,050 in total interest, versus about $622/month over 36 months with about $2,400 in interest.
Loan term compared: payment vs total interest
A $20,000 loan at 7.5% with no fees, by term. A longer term lowers the payment but costs more in total.
| Term | Monthly payment | Total interest |
|---|---|---|
| 24 months | $899.99 | $1,600 |
| 36 months | $622.12 | $2,396 |
| 48 months | $483.58 | $3,212 |
| 60 months | $400.76 | $4,046 |
| 72 months | $345.80 | $4,898 |
| 84 months | $306.77 | $5,768 |
How much the rate matters
| Rate ($20,000, 60 months) | Monthly payment | Total interest |
|---|---|---|
| 6% | $386.66 | $3,199 |
| 7.5% | $400.76 | $4,046 |
| 9% | $415.17 | $4,910 |
| 12% | $444.89 | $6,693 |
Where each payment goes
Interest is charged on the remaining balance, so early payments are mostly interest. On the $20,000, 7.5%, 60-month loan, the first payment of $400.76 is $125.00 interest and $275.76 principal. As the balance falls, the split shifts toward principal. The amortization ledger above shows every month.
What extra payments save
Adding to your monthly payment, with the extra applied to principal, on the same $20,000 loan:
| Extra per month | Payoff time | Total interest |
|---|---|---|
| $0 | 60 months | $4,046 |
| $50 | 53 months | $3,497 |
| $100 | 47 months | $3,081 |
| $200 | 38 months | $2,494 |
Check your lender allows extra payments toward principal without a penalty.
What an origination fee does to your effective APR
If the fee is taken from the loan proceeds, you receive less than you borrow but repay the full amount. Same $20,000 loan at 7.5% over 60 months:
| Origination fee | Cash you receive | Effective APR |
|---|---|---|
| 1% | $19,800 | 7.92% |
| 3% | $19,400 | 8.79% |
| 5% | $19,000 | 9.69% |
| 8% | $18,400 | 11.08% |
The effective APR here is the rate that equates the cash received to the payments. To receive exactly $20,000 after a 5% fee, borrow $21,053 (20,000 ÷ 0.95); the payment becomes about $421.85. Lenders state the official APR on your loan disclosure; the CFPB notes that APR reflects the interest rate plus other charges you pay to get the loan.
Frequently asked questions
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR usually includes additional fees.
Does paying extra each month reduce total interest?
Yes — extra payments go toward principal and can shorten the loan term.
How does an origination fee affect my loan payment?
The fee is usually deducted from your loan proceeds up front, so you receive less cash than the loan amount but still repay the full amount plus interest, raising your effective APR above the stated rate.
Is there a penalty for paying off a loan early?
It depends on the lender. Most personal loans have no prepayment penalty, but some auto, business, and specialty loans do — check your agreement.
How much does a longer loan term cost?
On a $20,000 loan at 7.5%, a 36-month term costs $622.12 a month and $2,396 in interest, while a 72-month term costs $345.80 a month but $4,898 in interest.
How much interest do I save by paying extra on a loan?
On a $20,000, 7.5%, 60-month loan, paying $100 extra each month, applied to principal, pays it off in 47 months and cuts total interest from $4,046 to about $3,081.
How does a 5% origination fee change my APR?
On a $20,000 loan at 7.5% over 60 months, a 5% fee taken from the proceeds leaves you $19,000 and raises the effective APR to about 9.69%.
How much should I borrow to cover an origination fee?
Divide the cash you need by one minus the fee. To receive $20,000 after a 5% fee, borrow about $21,053, which makes the payment about $421.85 over 60 months at 7.5%.
Why is my first payment mostly interest?
Interest is charged on the full balance at the start. On a $20,000, 7.5% loan, $125 of the first $400.76 payment is interest and $275.76 is principal.
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