Understand the full cost of a personal loan
A smaller monthly payment can be easier to fit into a budget, but a longer term usually increases total interest when the rate and principal stay the same. Compare both the monthly payment and total cost, and include origination fees before evaluating an offer.
A worked example you can check
A $20,000 personal loan at a fixed 10% annual rate over 60 months, with no fee, has an estimated monthly payment of $424.94. Total interest is $5,496.45 and total loan payments are $25,496.45.
Paying an extra $100 each month reduces interest by $1,333.81 and shortens repayment by 13 months, under the same assumptions.
Hypothetical inputs, not a current rate offer. Monthly interest and payments rounded to cents; final payment adjusted. Numerical fixtures checked with a separate Python Decimal implementation. See test cases.
How much is the payment on a $20,000 personal loan?
At 10% fixed interest for five years with no fees, the monthly payment is $424.94 in this model. The amount changes with the interest rate, term and any fees added to the balance. This is a hypothetical calculation, not a quote or approval.
Interest rate and APR are different
The nominal interest rate drives the monthly interest calculation. APR is a broader borrowing-cost measure that reflects applicable fees. Enter the nominal rate shown in your loan documents; do not substitute APR when the fee is also entered. This calculator does not compute regulatory APR.
Three ways an origination fee changes the result
- Upfront: loan balance stays the same; the fee is a separate initial cash outflow.
- Withheld: balance stays the same, but the borrower receives less cash. A $500 fee withheld from a $20,000 loan leaves $19,500 in proceeds.
- Financed: the fee increases the loan balance and incurs interest. A $500 fee added to a $20,000 loan creates a $20,500 repayment balance.
“Interest + origination fee” measures financing cost across these treatments. “Loan payments + upfront fees” is a cash-payment total; it does not add a withheld or financed fee twice.
Compare three borrowing scenarios
Add your current estimate, change the term, rate, fee or extra payment, and add another. When fees differ, compare the loan proceeds as well as the payment. Snapshots last only while this page stays open.