Personal loan calculator
Repayments, total interest and the payoff schedule on an unsecured personal loan, including what extra repayments are worth.
Monthly repayment
$525.70
21% of everything you repay is interest
- Total interest
- $5,233.30
- Total repaid
- $25,233
- Paid off in
- 4 years
| Amount borrowed | $20,000 |
|---|---|
| Interest | $5,233.30 |
| Total repaid | $25,233 |
$20,000 over four years at 11.9% costs about $525 a month and $5,209 in interest — a quarter of the amount borrowed.
Over the life of it
How this is calculated
Unsecured means a higher rate, not a different formula
The arithmetic matches a mortgage: interest accrues on the balance, the repayment covers it and the rest reduces principal. The difference is price — no security typically means 9% to 20% rather than 5% to 7%.
payment = P × r ÷ (1 − (1 + r)^−n)Short terms are where the saving is
On $20,000 at 11.9%, three years costs about $3,845 in interest and five years about $6,614. The monthly difference is roughly $101; the lifetime difference is $2,769.
The comparison rate is the ranking figure
Establishment fees of $250 to $600 and monthly service fees of $5 to $15 are outside the advertised rate. On a small loan they can add more than a percentage point, which only the comparison rate captures.
Worked example: $20,000 over four years at 11.9%
| Amount | $20,000 |
|---|---|
| Rate | 11.9% |
| Term | 4 years |
| Monthly repayment | about $525 |
|---|---|
| Total interest | about $5,209 |
| Total repaid | about $25,209 |
Paying $100 extra a month clears it around nine months early and saves close to $1,000, since unsecured loans rarely carry early repayment penalties on variable rates.
What this assumes
- A fixed rate for the full term.
- Principal and interest with no balloon.
- Fees excluded from the quoted rate.
- No early repayment penalty.
Where this commonly goes wrong
- Advertised rates are usually the best-case tier for excellent credit; the offered rate after assessment is frequently several points higher.
- Fixed-rate personal loans often carry a break fee, so the extra-repayment saving shown here may not be available on a fixed contract.
- Consolidating credit card debt into a longer personal loan can lower the payment while raising total interest if the term stretches out.
Questions
What are the repayments on a $20,000 personal loan?
About $525 a month over four years at 11.9%, totalling roughly $25,209. Three years raises the payment to about $664 but cuts total interest to around $3,845.
Is a personal loan better than a credit card?
Usually, for a fixed amount. Personal loans run 9% to 20% against typical card rates above 20%, and the fixed term forces the balance down rather than allowing a minimum-payment cycle to run indefinitely.
What term should I choose?
The shortest you can service comfortably. On $20,000 at 11.9%, moving from five years to three saves $2,769 in interest for about $139 more a month, and shortens the period any rate rise can affect you.
Do personal loans have fees?
Commonly an establishment fee of $250 to $600 and a monthly service fee of $5 to $15. On a small loan those can add more than a percentage point of effective cost, which is why the comparison rate matters more than the headline.
Can I pay a personal loan off early?
Variable-rate loans almost always allow it without penalty, and it is the cheapest saving available — $100 extra a month on $20,000 saves close to $1,000. Fixed-rate contracts often charge a break fee, so check before committing.
Will applying affect my credit score?
Each application creates an enquiry that briefly lowers the score, and several in a short period compound the effect. Use pre-qualification checks that do a soft enquiry to compare offers before formally applying.
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Sources
This calculator does arithmetic on the figures you enter. It does not account for tax, fees, or your personal circumstances.
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