Personal Loan Calculator
Calculate your monthly payments and total loan cost
Monthly Payment: $311.06
Total Loan Amount
$10,000.00
Total Interest Paid
$1,198.24
Total of 36 Payments
$11,198.24
Payoff Time
36 months
Loan Breakdown
Amortization Schedule
Annual Schedule
Monthly Schedule
| Year | Interest | Principal | Ending Balance |
|---|
Understanding Personal Loans
What is a Personal Loan?
A personal loan is an unsecured loan that provides funds for various personal expenses. Unlike mortgages or auto loans, personal loans are not secured by collateral, which means lenders rely on your creditworthiness to approve the loan.
Key Features of Personal Loans
- Fixed Interest Rates: Most personal loans have fixed interest rates, meaning your monthly payment remains the same throughout the loan term.
- Fixed Repayment Period: Personal loans have set repayment terms, typically ranging from 1 to 7 years.
- Unsecured: Personal loans generally don't require collateral, unlike auto loans or mortgages.
- Lump-Sum Funding: You receive the entire loan amount upfront and repay it in regular installments.
Typical Personal Loan Interest Rates
| Credit Score Range | Typical APR Range | Loan Amount Range |
|---|---|---|
| 720-850 (Excellent) | 10.3% - 12.5% | $1,000 - $100,000 |
| 690-719 (Good) | 13.5% - 15.5% | $1,000 - $50,000 |
| 630-689 (Fair) | 17.8% - 19.9% | $1,000 - $35,000 |
| 300-629 (Poor) | 20.0% - 30.0%+ | $1,000 - $15,000 |
Common Uses for Personal Loans
- Debt consolidation
- Home improvements
- Major purchases
- Medical expenses
- Wedding expenses
- Vacation funding
- Moving costs
Factors That Affect Your Personal Loan Eligibility
- Credit Score: Higher scores typically qualify for better rates
- Income: Lenders want to ensure you can repay the loan
- Debt-to-Income Ratio: Your monthly debt payments compared to your income
- Employment History: Stable employment is viewed favorably
- Loan Purpose: Some lenders have restrictions on how you can use the funds
Pros and Cons of Personal Loans
| Advantages | Disadvantages |
|---|---|
| Fixed monthly payments | Higher interest rates than secured loans |
| No collateral required | Potential origination fees (1-6% of loan amount) |
| Fast funding (often within a week) | Possible prepayment penalties |
| Can improve credit score if paid on time | May encourage unnecessary debt |
Tips for Getting the Best Personal Loan
- Check your credit score and report before applying
- Compare offers from multiple lenders
- Consider credit unions for potentially lower rates
- Look for lenders that offer prequalification without a hard credit check
- Read the fine print for any hidden fees
- Only borrow what you need and can afford to repay