A Personal Loan Calculator is a financial tool that helps you understand the costs associated with a personal loan. It allows you to estimate your monthly payments, see the total interest you'll pay over the life of the loan, and view a detailed amortization schedule.

Whether you're consolidating debt, funding a home improvement project, or covering an unexpected expense, this calculator provides the clarity you need to make informed borrowing decisions.

Understanding the true cost of a personal loan is key to responsible borrowing. A calculator helps you compare offers from different lenders by showing how variations in interest rates and loan terms affect your monthly payment and total cost.

It also empowers you to create a repayment strategy. By modeling the impact of extra payments, you can see how to pay off your loan faster and save a significant amount on interest.

The calculator uses a standard amortization formula based on three key inputs:

• Loan Amount – The amount you want to borrow.
• Interest Rate – The Annual Percentage Rate (APR) offered by the lender.
• Loan Term – The length of time you have to repay the loan.

Each monthly payment is split between principal (the money you borrowed) and interest (the cost of borrowing). Initially, a larger portion of your payment covers interest. Over time, as the principal balance decreases, more of your payment goes toward paying it down.

This calculator can also show you the powerful effect of making additional payments toward your principal.