Loan Calculator

Whether you're planning a wedding, consolidating debt, or starting a small business, getting a loan is a common way to finance life's major expenses. Our Simple Loan Calculator helps you plan your borrowing by estimating your monthly payments and total interest costs.

How Do Personal Loans Work?

A personal loan is typically an installment loan, meaning you borrow a fixed amount of money and pay it back with interest in monthly installments over the life of the loan—typically 12 to 84 months.

Unlike credit cards, which have variable rates and revolving balances, personal loans usually have fixed interest rates. This makes your monthly payment predictable, which is great for budgeting.

Key Factors Affecting Your Loan

Three main variables determine how much you will pay each month:

• Loan Amount (Principal): The total amount you borrow. Borrowing more means higher payments.
• Interest Rate (APR): The cost of borrowing, expressed as a yearly percentage. Your rate is heavily influenced by your credit score. A lower score means a higher rate, which can cost you thousands in extra interest.
• Loan Term: How long you have to pay back the loan. A longer term (e.g., 5 years) lowers your monthly payment but increases the total interest you pay. A shorter term (e.g., 2 years) saves you money on interest but requires a higher monthly payment.

Common Uses for Personal Loans

• Debt Consolidation: Combining high-interest credit card debt into a single, lower-interest loan.
• Home Improvement: Funding renovations like a new kitchen or roof.
• Medical Expenses: Covering unexpected bills or elective procedures.
• Weddings & Events: Paying for large, one-time life events.