Personal Loan Calculator
A personal loan is an unsecured loan that provides borrowers with funds for various purposes, from debt consolidation to major purchases. Unlike secured loans, personal loans don't require collateral, making them accessible but often with higher interest rates. Most personal loans feature fixed interest rates and predictable monthly payments.
- Fixed Payment Personal Loan: Regular monthly payments with fixed interest rate
- Balloon Payment Personal Loan: Lower monthly payments with large final payment
- Line of Credit: Revolving credit with flexible repayment options
Fixed Payment Personal Loan: Standard Repayment Plan
Use this calculator for basic calculations of personal loans, debt consolidation loans, home improvement loans, or medical loans.
| Loan Amount | |
| Loan Term | years months |
| Interest Rate | |
| Compound | |
| Pay Back | |
Results:
| Payment Every Month | $556.11 |
| Total of 60 Payments | $33,366.60 |
| Total Interest | $8,366.60 |
| View Amortization Table | |
Balloon Payment Personal Loan: Lower Monthly Payments
| Loan Amount | |
| Loan Term | years months |
| Interest Rate | |
| Compound | |
Line of Credit: Flexible Access to Funds
Use this calculator to compute the initial credit limit and interest calculations for personal lines of credit.
| Credit Limit | |
| Draw Period | years months |
| Interest Rate | |
| Compound | |
Personal Loan Types and Options
Personal loans come in various forms to meet different financial needs. Most personal loans are unsecured, meaning they don't require collateral, but this typically results in higher interest rates compared to secured loans. Understanding the different types can help you choose the best option for your situation.
| Personal Loan | Debt Consolidation |
| Home Improvement | Medical Loan |
| Wedding Loan | Vacation Loan |
| Emergency Loan | Bad Credit Loan |
Understanding Personal Loan Terms
Personal loans typically range from $1,000 to $100,000, with repayment terms from 2 to 7 years. Interest rates vary significantly based on credit score, income, and debt-to-income ratio. Most lenders offer fixed interest rates, providing predictable monthly payments throughout the loan term.
Personal Loan Requirements
Lenders evaluate personal loan applications based on several factors including credit score (typically 580+ required), income verification, employment history, and debt-to-income ratio. A higher credit score generally qualifies you for better interest rates and terms.
Interest Rates and APR
Personal loan interest rates typically range from 6% to 36% APR, depending on creditworthiness. The APR includes both the interest rate and any fees, giving you a complete picture of the loan cost. Fixed rates are most common, though some lenders offer variable rates that may start lower but can increase over time.
Fees and Costs
Common personal loan fees include origination fees (1-8% of loan amount), late payment fees, and prepayment penalties. Some lenders offer no-fee options, though these may come with higher interest rates. Always compare the total cost of borrowing, not just the interest rate.
Loan Uses
Personal loans can be used for various purposes including debt consolidation, home improvements, medical expenses, weddings, vacations, or other major purchases. Unlike mortgages or auto loans, personal loans are typically unrestricted in their use, giving borrowers flexibility in how they use the funds.
Personal Loan Benefits and Drawbacks
Benefits
Personal loans offer several advantages: fixed monthly payments, no collateral required, quick approval and funding, and flexible use of funds. They can be an excellent tool for consolidating high-interest debt or financing large expenses without using credit cards.
Drawbacks
The main disadvantages include higher interest rates compared to secured loans, potential fees, and the risk of taking on more debt. Borrowers with poor credit may face very high rates or may not qualify at all.
Alternatives to Personal Loans
Before taking a personal loan, consider alternatives such as credit cards (for smaller amounts), home equity loans or lines of credit (if you own a home), 401(k) loans, or borrowing from family or friends. Each option has different terms, rates, and implications for your financial situation.