Personal Loan Calculator

Created by Arunangshu DasReviewed Nov 14, 2026

Calculate a personal loan's monthly payment, cost of credit and annual rate including an upfront fee.

Enter the amount borrowed, the annual rate, the term in months and one upfront fee. Other fees and taxes are not included.

Monthly payment, cash received and cost of credit

Enter the loan terms and fee or load the worked example.

The rate including the fee is the monthly rate at which these payments discount to the cash received, shown times 12 and as an effective annual rate. It is arithmetic for comparison, not a lender's APR, APRC or comparison-rate disclosure, which follow each country's own rules. With no fee it matches the entered rate apart from the rounding of payments to 0.01. The entered rate is nominal, charged at one twelfth each month on the balance still owed, with payments at the end of each month. Other fees, insurance, taxes, late charges and early repayment are not included.

Learn what a personal loan really costs

Follow the payment formula and see how an upfront fee changes the rate you pay.

Read the personal loan guide

Formula and methodology

Payment = P × r ÷ (1 − (1 + r)^−n), with r = annual rate ÷ 12 ÷ 100; cash received = P − fee; cost of credit = interest + fee.

The payment follows the level-payment formula on the whole amount borrowed, with the annual rate divided by 12, and is the smallest payment in steps of 0.01 whose month-by-month ledger clears the loan. Cash received = amount borrowed − fee. Cost of credit = total interest + fee. The rate including the fee is the monthly rate at which the payments discount to the cash received; it is shown times 12 and as an effective annual rate.

Definitions

A personal loan is a fixed amount repaid by level monthly payments of principal and interest over a set term. An upfront fee, called an origination, processing, arrangement or establishment fee in different markets, is charged once when the loan is set up. When it is taken from the loan, the cash you receive is less than the amount you borrow and pay interest on. The cost of credit is the interest plus the fee.

Verified worked examples

Borrow 10,000 at 11% a year for 36 months with a 300 fee taken from the loan. The mathematical payment is 327.387, so the payment is 327.39. You receive 9,700. In month 1 interest is 91.67 and 235.72 reduces the balance. The 36th payment is 327.28. Total interest is 1,785.93 and the cost of credit is 2,085.93. The payments discount to 9,700 at 1.093248% a month, which is 13.1190% times 12 and 13.9373% as an effective annual rate.

Interpretation

The monthly payment does not change with the fee, because interest is charged on the amount borrowed. The fee shows up in two places: less cash in hand, and a higher rate once the fee is counted. Compare two offers on the rate including the fee and on the cost of credit, for the same amount received and the same term, and not on the interest rate alone.

Inputs and interpretation

Enter the amount borrowed, the annual rate on the reducing balance, the term in whole months and the upfront fee as an amount (0 if none). If the fee is a percentage, work out the amount first: 3% of 10,000 is entered as 300. If the lender adds the fee to the loan, enter the amount borrowed including the fee. Choose a market for number formatting only.

Assumptions and limitations

A fixed nominal annual rate charged at one twelfth each month, equal model months, payments at the end of each month starting one month after the loan is drawn, and one fee taken on the day the loan is drawn. Interest is rounded half up to 0.01 each month. There are no other fees, insurance, taxes, late charges, payment holidays or early repayment.

Supported domain and common mistakes

Amounts above 0 up to 1 trillion and fees from 0 to below the amount borrowed, each with at most 2 decimal places; annual rates from 0% to 100%; terms from 1 to 120 whole months. A rate including the fee above 100% a month is reported as not shown. The calculator does not reproduce any country's APR, APRC or comparison-rate rules, and does not estimate what a lender will offer.

Do not compare one loan's interest rate with another loan's APR. Do not enter the fee as a percentage. Do not assume you receive the full amount borrowed when the fee is deducted. Do not read the rate including the fee as the lender's disclosed APR: which charges count, and how the rate is annualised, depend on the country's rules.

Frequently asked questions

How is the monthly personal loan payment calculated?

Divide the annual rate by 12 to get the monthly rate r. With P borrowed over n months, payment = P × r ÷ (1 − (1 + r)^−n). The calculator then rounds to the smallest payment in 0.01 steps that clears the loan, and the last payment settles what remains.

How does an upfront fee change the cost?

It does not change the monthly payment, because interest is charged on the amount borrowed. It reduces the cash you receive and adds to the cost of credit. On 10,000 at 11% for 36 months, a 300 fee leaves 9,700 received and lifts the rate from 11% to about 13.12% once the fee is counted.

Is the rate including the fee the same as the APR?

It follows the same idea: one rate that counts interest and the fee. It is not a lender's disclosed APR. Regulators define which charges are included and how the rate is annualised, and those rules differ by country. Use the lender's disclosed figure when one is given.

Why are two rates including the fee shown?

The first multiplies the monthly rate by 12, a nominal annual rate. The second compounds the monthly rate over 12 months, an effective annual rate, which is higher. Disclosures in different countries use one or the other, so compare like with like.

What if the fee is added to the loan instead of deducted?

Enter the amount borrowed including the fee, and the fee itself in the fee field. Interest is then charged on the larger amount, and the cash received is still the amount borrowed less the fee.

Why does the no-fee rate differ slightly from the rate I entered?

Each payment is rounded up to a whole 0.01 and monthly interest is rounded, so the payments are worth a fraction more than the exact formula gives. The difference is far below 0.01 of a percentage point on ordinary loans.

Sources and educational scope

Educational arithmetic for a fixed-rate, level-payment personal loan with one upfront fee. It is not a loan offer, an eligibility or affordability assessment, a regulated APR, APRC or comparison-rate disclosure, or financial advice. A lender's own rounding, day count, fees and conventions will differ; rely on the lender's documents.

Reviewed 2026-11-14. AI-assisted content under operator editorial responsibility. No independent expert financial review is claimed.