Personal Loan Payment & APR Calculator

Calculate your personal loan's monthly payment, total interest, and effective APR after origination fees, so you can compare lender offers accurately.

Mathematical Audit

Personal Loan Payment & APR Formula

The calculator computes your fixed monthly payment from the loan amount and stated interest rate, then works out how much cash you actually receive after the origination fee is deducted. It then solves for the effective APR — the rate that equates your monthly payments to the smaller amount you actually received.

Monthly Rate (r) = Interest Rate ÷ 12
Monthly Payment = Loan Amount × [r × (1 + r)^n] ÷ [(1 + r)^n − 1]
Origination Fee = Loan Amount × Origination Fee %
Net Proceeds = Loan Amount − Origination Fee
Total Interest = (Monthly Payment × n) − Loan Amount
Effective APR solves: Net Proceeds = Monthly Payment × [1 − (1 + APR/12)^−n] ÷ (APR/12)

The 'Loan Amount' is the principal you owe and the basis for your monthly payment. The origination fee is typically deducted from your disbursement, so the cash you receive ('Net Proceeds') is less than the loan amount. The effective APR captures this gap, which is why it is always higher than the stated interest rate when an origination fee applies.

Operational Guide

How to Use the Personal Loan Payment & APR Calculator

1

Enter the loan amount

Input the total principal you're borrowing — this is the amount your monthly payment is based on.

2

Enter the interest rate

Input the nominal annual interest rate quoted by the lender (not the APR).

3

Enter the origination fee

Many personal loans charge a 1-10% origination fee, deducted from the funds you receive.

4

Select your loan term

Choose a repayment term between 12 and 84 months.

5

Calculate and compare

View your monthly payment, total interest, net proceeds, and the effective APR to compare offers from different lenders.

Real-World Scenario Example

"A borrower takes out a $10,000 personal loan at a 10% interest rate with a 10% origination fee over a 36-month term."

Inputs

loanAmount:10000
interestRate:10
originationFeePercent:10
loanTermMonths:36

Result

The monthly payment is $322.67. The $1,000 origination fee is deducted upfront, so the borrower receives $9,000 in net proceeds. Total interest paid is $1,616, and the effective APR — reflecting the smaller amount actually received — is 17.4%, well above the 10% stated interest rate.

Important Disclaimer

This calculator provides estimates for educational purposes only and does not constitute financial advice. Actual APR, fees, and payment amounts depend on your lender, credit profile, and loan agreement terms. Refer to your loan's Truth in Lending Act (TILA) disclosure for exact figures.

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