What is Personal Loan Calculator?
Calculates fixed equal monthly payment installments on unsecured bank, peer-to-peer, or credit union personal loans.
How to Use This Calculator
- Enter loan amount.
- Enter APR interest rate.
- Choose repayment term in years.
- View monthly installment and total financing cost.
The Mathematical Formula & Variables
PMT = Principal * (r * (1 + r)^n) / ((1 + r)^n - 1)
Step-by-Step Worked Example
Scenario: $10,000 personal loan at 11.5% for 3 years (36 months).
- r = 0.115 / 12 = 0.009583; n = 36.
- Monthly payment = $329.80.
- Total payments = $11,873; Total interest = $1,873.
Result: $329.80 / month
Frequently Asked Questions
Do personal loans require collateral?
No, traditional personal loans are unsecured, meaning you do not pledge assets like your home or car as collateral.