# What will my personal loan cost?

Computes the monthly payment, total cost, and APR of a fixed-rate personal loan with an origination fee taken from the loan or added to it.

- Page: https://www.acalculator.org/finance/personal-loan-calculator
- JSON spec: https://www.acalculator.org/finance/personal-loan-calculator.json
- Version: 6b7156e27165

## Default answer

Example with the default inputs (Loan amount $15,000.00, Interest rate 12%, Loan term (months) 36, Origination fee 5%, The fee is Taken from the loan, Loan start date September 29, 2026) on the example date Tuesday, September 29, 2026: Borrowing $15,000.00 at 12% over 36 months costs $498.21 a month; with the fee, the APR is 15.61% and the loan costs $3,685.73 in all.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| amount | Loan amount | The amount of the loan you apply for, before any fee. |
| rate | Interest rate | The yearly interest rate of the loan, charged monthly at the rate divided by 12. |
| term | Loan term (months) | The number of monthly payments, for example 24, 36, or 60. |
| fee | Origination fee | A one-time fee charged as a percentage of the loan amount. |
| feeway | The fee is | Whether the fee is taken out of the money you receive or added to the balance you repay. |
| start | Loan start date | The day the loan starts. The first payment is one month later. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| payment | Monthly payment | The level monthly payment that repays the loan over its term. |
| apr | APR | The annual percentage rate: 12 times the monthly rate at which the payments repay the cash you receive, so the fee counts as a cost. |
| cash | Cash you get | The money paid out to you: the loan amount minus a fee taken from it. |
| feeAmount | Origination fee | The fee in dollars: the fee rate times the loan amount. |
| loan | Balance you repay | The balance the payments repay: the loan amount, plus the fee when it is added to the loan. |
| interest | Total interest | All the interest paid over the term. |
| paid | Total of payments | Every monthly payment added up. |
| cost | Cost of the loan | The total of payments minus the cash you get: the interest plus the fee. |
| payoff | Paid off in | The month of the last payment, when a start date is given. |

## Method

payment = L × r ÷ (1 − (1 + r)^−n), with L the balance you repay, r the rate ÷ 12, and n the months; the APR is 12 × j, where j is the monthly rate at which n payments repay the cash you receive.

## Assumptions

- The rate is fixed and interest is charged monthly at the rate ÷ 12 on the balance.
- The fee is a percentage of the loan amount, taken from the money you receive or added to the balance.
- Payments are made at the end of each month, starting one month after the start date.
- The APR follows the actuarial method of Regulation Z (12 CFR 1026.22), with the fee as a prepaid finance charge.
- Values are not rounded to the cent between months; only the display is rounded.

## Worked examples

1. amount = $10,000.00, rate = 12%, term = 36, fee = 5%, feeway = deduct gives payment = $332.14, cash = $9,500.00, apr = 15.605202%, cost = $2,457.15. Source: hand calculation in content.mdx; APR by the Regulation Z actuarial method, Python 3 in docs/progress/WP-31/python/personal_loan.py.
2. amount = $10,000.00, rate = 12%, term = 36, fee = 5%, feeway = add gives payment = $348.75, loan = $10,500.00, cash = $10,000.00, apr = 15.427464%, interest = $2,055.01. Source: hand calculation in content.mdx; APR by the Regulation Z actuarial method (Python 3).
3. amount = $5,000.00, rate = 9%, term = 24, fee = 0%, feeway = deduct, start = 2026-10-01 gives payment = $228.42, apr = 9%, interest = $482.17, payoff = 2028-10-01. Source: hand calculation in content.mdx: with no fee the APR equals the rate.

## FAQ

### What is an origination fee?

It is a one-time fee some lenders charge for making the loan, usually a percentage of the loan amount. Most lenders take it out of the money they pay you, so a $10,000 loan with a 5% fee puts $9,500 in your account while you still repay $10,000. Some add the fee to the balance instead.

### Why is the APR higher than the interest rate?

The APR (annual percentage rate) counts the fee as a cost of borrowing. Under the Truth in Lending rules it is the yearly rate at which your payments repay only the cash you actually receive. On $10,000 at 12% over 36 months, a 5% fee taken from the loan raises the APR to 15.61%.

### Is it better to have the fee taken out or added to the loan?

With the fee taken out you get less cash and pay less each month. With the fee added you get the full amount but pay interest on the fee too. For the same loan the APR is a little lower when the fee is added (15.43% against 15.61% in the example), because the fee is spread over the term instead of reducing the cash on day one. If you need the full amount in hand, you would have to apply for more when the fee is taken out.

### How do I compare two personal loan offers?

Compare the APR and the total cost for the same amount and term. A loan with a lower rate but a higher fee can cost more. Enter each offer here and compare the "Cost of the loan" line, which is everything you pay above the cash you get.

### Does paying off a personal loan early save money?

It saves the interest you would have paid on the rest of the term, but not an origination fee that was already charged. Some loans also charge a prepayment penalty, so check your loan agreement first. The loan payoff calculator shows the saving from extra payments.

### How is the monthly payment worked out?

With the standard formula for a fixed-rate loan: payment = L × r ÷ (1 − (1 + r)^−n), where L is the balance you repay, r is the yearly rate divided by 12, and n is the number of months. For $10,000 at 12% over 36 months it is $332.14.

## Sources

- Consumer Financial Protection Bureau, What is the difference between a loan interest rate and the APR? https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-loan-interest-rate-and-the-apr-en-733/
- Regulation Z (Truth in Lending), 12 CFR 1026.22, Determination of annual percentage rate. https://www.consumerfinance.gov/rules-policy/regulations/1026/22/
- Regulation Z, 12 CFR 1026 appendix J, Annual percentage rate computations for closed-end credit transactions (actuarial method). https://www.consumerfinance.gov/rules-policy/regulations/1026/j/
- Consumer Financial Protection Bureau, Can I prepay my loan at any time without penalty? https://www.consumerfinance.gov/ask-cfpb/can-i-prepay-my-loan-at-any-time-without-penalty-en-843/