Personal Loan Calculator

Last updated July 2, 2026

Personal loans occupy a specific niche in the borrowing landscape: they're unsecured, fixed-rate, fixed-term loans that don't require collateral, making them accessible to a broader credit range than secured alternatives but priced higher to compensate for the lender's additional risk. Rates in 2026 range from approximately 7 to 8 percent for borrowers with excellent credit (typically 760 and above) to 25 to 36 percent for borrowers with poor credit. The difference between those ends of the spectrum is enormous in dollar terms: a $15,000 loan at 8 percent over four years costs $366 per month and $2,570 in interest. The same loan at 25 percent costs $493 per month and $8,664 in interest — more than three times the total interest cost.

The most common use cases for personal loans are debt consolidation, major home repairs, and medical expenses — all situations where the borrower needs a fixed sum with a predictable repayment schedule. The consolidation case is worth examining carefully: consolidating $15,000 in credit card debt at 22 percent into a personal loan at 12 percent saves substantial interest, but only if the original credit card balances aren't subsequently rebuilt. The CFPB finds that a meaningful percentage of debt consolidators reload their original credit lines within a few years, ending up with both the consolidation loan and new credit card debt — a worse position than before. The personal loan calculation should always include a plan for the original debt instruments after consolidation.

Shopping personal loan rates across at least three to five lenders before accepting any offer — rates vary significantly by lender even for the same credit profile, and online lenders often undercut bank and credit union rates for qualified borrowers. Run the payment at your offered rate and at the next tier down to understand the cost of your current credit score, which can motivate short-term credit improvements before borrowing.