Personal loan calculator
Monthly payment, total interest, and the true APR — including the origination fee most lenders deduct from your disbursement.
What will the loan actually cost?
Total cost
True cost of borrowing
Personal loan math, plain English.
A personal loan uses standard amortization: a fixed monthly payment that's part interest, part principal. The formula is:
M = P × [r(1+r)n] / [(1+r)n − 1]
Where P = principal, r = monthly rate (APR ÷ 12), n = months. The first few months you pay mostly interest; in the last few months you pay mostly principal.
The origination fee is what makes this calculator different from a basic loan calc. Most personal lenders (LendingClub, Best Egg, Avant, Upstart, etc.) deduct the fee from your disbursement — so if you "borrow $20,000" with a 5% fee, you actually receive $19,000 in your bank but pay interest on the full $20,000. That changes your true APR:
True APR ≈ 2 × (annual interest + amortized fee) / cash received
For high-fee loans, the true APR can be 2–4 percentage points higher than the quoted rate. Always compare loans by true APR, not headline rate.
Personal loan tips for 1099 workers.
- Two years of tax returns — most lenders want Schedule C + Form 1040 history. New freelancers may need a co-signer or bank-statement loan.
- Interest is not tax-deductible — unlike business loan interest (Schedule C line 16) or mortgage interest. A personal loan even when used for business purposes is generally personal-side; consider a true business loan instead if you want the deduction.
- Watch DTI — most lenders cap at 35–43% debt-to-income. Check your DTI before applying.
- Pre-qualification ≠ approval — soft pull rates are usually 1–3 points lower than your final hard-pull rate. Build in buffer.
- Origination fee is non-refundable — if you pay off early, you don't get the fee back. Only the interest stops accruing.
Refinancing high-interest debt (credit cards at 22–28%) into a personal loan (11–16%) can save 5–10% APR if your credit qualifies. Compare true APR with origination fee included before deciding.