Personal Loan

Calculate personal loan payments and interest.

Formula & Methodology

Monthly payment M = P × [r(1+r)^n] / [(1+r)^n − 1], with P the loan principal, r the monthly rate, and n the term in months.

Worked Example

A $15,000 personal loan at 9% for 48 months costs about $373/month.

Frequently Asked Questions

What is a personal loan?

An unsecured installment loan with a fixed rate and term, repaid in equal monthly payments.

How does the term affect cost?

A shorter term raises the payment but lowers total interest. A longer term lowers the payment but increases total interest.

Does this include origination fees?

No. Some lenders charge origination fees that reduce the net loan amount and effectively raise the cost.

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