Work out the monthly payment, total interest and true APR (fees included) of an unsecured personal loan before you sign.
| Scenario | Monthly Payment | Total Paid | Total Interest | True APR (w/ fees) |
|---|---|---|---|---|
| $10,000 / 12% / 3 yr / $0 fees | $332 | $11,957 | $1,957 | 6.14% |
| $20,000 / 9.5% / 5 yr / $500 fees | $420 | $25,202 | $5,202 | 5.14% |
| $5,000 / 7% / 2 yr / $150 fees | $224 | $5,373 | $373 | 5.10% |
| $35,000 / 15% / 7 yr / $0 fees | $675 | $56,732 | $21,732 | 7.14% |
Each row is produced by the same amortization formula the calculator uses: PMT = P × r / (1 − (1+r)−n), with r = APR/12 and n = years × 12. Origination fees are added to the numerator of the true-APR formula so you can compare offers on an all-in basis.
The monthly payment is what your bank drafts each month. Total interest is the sum of every payment minus principal — the honest price of borrowing. The true APR blends fees back in so a loan with a low headline rate but a 5% origination fee is exposed as more expensive than it looks.
| Borrowing option | Typical APR (2025) | Best for |
|---|---|---|
| Personal loan (unsecured) | 11% – 24% | Debt consolidation, mid-size needs |
| Credit card | 20% – 29% | Very short-term, small balances |
| Home equity loan | 8% – 12% | Large amounts, you own a home |
| 0% intro card | 0% then 20%+ | Only if you repay inside the promo window |
Real-world benchmark: Federal Reserve data (Q3 2025) put the average 24-month personal loan rate around 11.5% for borrowers with strong credit and well above 20% for subprime. A 3-point rate difference on a $20,000 five-year loan costs roughly $1,800 extra in interest — which is why the true-APR figure matters more than the advertised headline.
A personal loan is an unsecured installment loan: no collateral, fixed rate, fixed term. It is the right tool when you need a defined lump sum and want a predictable payoff date. The most common use case is debt consolidation — replacing three credit cards at 24% with one loan at 13% cuts the effective cost of the balance even though the total is unchanged.
It is the wrong tool for open-ended spending. Because the payment is fixed, a personal loan cannot flex with your income the way a credit card can. Borrowers who take a loan for a need that recurs (living expenses) often end up servicing the loan and re-borrowing on cards.
⚠️ Important: Personal loan rates, fees and terms vary by lender, credit profile and state. This calculator gives an estimate only and is not a loan offer or financial advice. Confirm all figures with your lender before borrowing.