Personal Loan Calculator

You apply with a bank, credit union or online lender, providing details of your income and credit. If approved, you receive a lump sum, often within days, then repay it in fixed monthly payments for a set term. Most have a fixed rate, so the payment doesn't change. Missing payments can damage your credit, and the lender could send the debt to collections or sue.

Common uses include consolidating credit card debt, home repairs, medical bills, moving costs and big one-off expenses. Lenders generally don't restrict how you use it, though some rule out college costs, business expenses or investing. Just because you can use it for a vacation doesn't mean you should. Consider whether the expense is worth the interest you'll pay over several years.

A good rate is lower than what you'd otherwise pay and at or below what similar borrowers get. Your credit score, income and debts drive it, so compare offers from several lenders, including credit unions, on the same day. Use APR rather than the interest rate, since it includes origination fees. The table above shows how much the rate changes your payment.

Lenders commonly offer from about $1,000 to $50,000 or more, depending on your credit, income and existing debts. Many look at your debt-to-income ratio. Lenders might approve you for more than you need, but you should borrow only what you can repay comfortably. Check how the payment fits your budget above. Prequalification will show your real limit without a hard credit check.

There's no fixed multiple. Lenders look at your debt-to-income ratio, often preferring total debt payments below 36% to 43% of gross income. On $50,000, gross monthly income is about $4,167, so a 36% limit allows about $1,500 in total debt payments. If you already pay $800, that leaves about $700. At 12% over 5 years, $700 a month supports a loan of about $31,469.

Applying usually causes a small, temporary dip from the hard inquiry. A new loan shortens your average account age. But on-time payments can help over time, and adding an installment loan to your credit mix may help too. Using one to pay off credit cards can lower your utilization, which may raise your score, as long as you don't run the cards back up.

Possibly, but at higher rates, sometimes with stricter limits or a higher fee. A credit union, a co-signer or a secured loan can improve your odds. Be wary of lenders who guarantee approval or ask for fees upfront, as those are common signs of a scam. If the rate is very high, consider whether a smaller loan or waiting while you rebuild your credit might be cheaper.

A personal loan gives you a fixed amount, usually with a fixed rate and end date, so you know exactly when you'll finish. A credit card lets you borrow repeatedly up to a limit, with a variable rate and flexible minimum payments. Loans suit one-time expenses and debt consolidation. Cards suit small purchases that you can pay off monthly. Rates on loans are often lower.

It can help, if the new APR is clearly lower and you don't run the cards back up. Compare the total cost, including any origination fee, with what you'd pay on your cards at the same monthly amount. A longer term might lower your payment and still cost more overall. Also compare it with a balance transfer offer. See our credit card interest calculator.

Online lenders can often approve you within minutes and send money within one to a few days. Banks and credit unions may take a little longer, especially if you're a new member. You'll usually need ID, proof of income and bank details. Be careful about urgency, since a quick decision may cost you. Compare at least two or three offers before you accept.

You'll save the interest you would have paid over the rest of the term, and many lenders charge no penalty. Check your loan agreement for a prepayment clause. Origination fees generally aren't refunded. Paying early might slightly lower your score for a while, since you've closed an account, but the interest savings usually matter far more.

It's the rate at which your payments repay the money you actually received, not the amount on the loan. Borrow $10,000 at 12% for 3 years with a 5% fee, and you get $9,500 but pay $332 a month on the full $10,000. That works out to 15.61% a year. Lenders must show an APR that includes the fee, so compare that figure, and use the calculator to check it.