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Borrow & repay

Personal Loan Calculator

What will a personal loan really cost, fees included?

Updated Free, no sign-upRuns in your browser

$
%
The rate on the offer, before fees.
months
%
Taken out of the money you receive. 0 if none.

Monthly payment

$332.14

$10,000 at 12% over 36 months.

True APR, with the fee
15.61%
Cash you receive
$9,500
Origination fee
$500
Interest
$1,957
Total cost of borrowing
$2,457

The average rate on a 24-month personal loan at a bank was 11.86% in 2026 Q2 (Federal Reserve).

Personal Loan Calculator by Dollars World ·Open the full version

The same loan with different fees

Same amount, rate and term. The fee doesn't change the payment, only what you receive, so it shows up in the APR.

Origination feeYou receiveTrue APRTotal cost
None———
1%———
3%———
5%———
8%———

How it works

A personal loan is repaid in equal monthly payments worked out from the loan amount, the interest rate and the term. Many lenders also charge an origination fee and take it out of the money they send you, so you pay interest on the full loan while receiving less. The APR captures that: it's the rate at which your payments add up to the cash you actually received, the method lenders use for the APR they must disclose.

Monthly payment = L × r(1 + r)^n ÷ ((1 + r)^n − 1), with L the loan, r the rate ÷ 12, n the months

Worked example

A $10,000 loan at 12% for 36 months costs $332.14 a month. With a 5% origination fee you receive $9,500, not $10,000, and the true APR is 15.61%. Over three years you pay $1,957 of interest plus the $500 fee: $2,457 for the $9,500 you got. Without the fee, the same loan would cost $1,957.

Need the full $10,000 in hand? You'd have to borrow $10,526 to cover the fee, at $349.62 a month.

Things to know

  • Compare offers by APR. A lower rate with a big fee can cost more than a higher rate with none. The table above shows the effect.
  • Checking your rate. Many lenders show a rate after a soft credit check that doesn't affect your score. The hard check comes when you apply.
  • Paying off debt? See whether one loan beats your cards with the debt consolidation calculator, or compare a 0% card with the balance transfer calculator.
  • Buying a car? A secured car loan usually costs less; use the car loan calculator.
  • Prepayment. Most personal loans let you pay early without a penalty, but check the terms. The origination fee isn't refunded if you do.

Questions people ask

What's the difference between the interest rate and the APR?

The interest rate sets your payment. The APR also counts fees such as the origination fee, as a yearly rate, so it's the fairer number to compare between lenders.

What's a normal personal loan rate?

At banks the average on a 24-month personal loan was 11.86% in 2026 Q2, according to the Federal Reserve. Your rate depends mostly on your credit score, income and existing debts; online lenders can quote much higher or lower.

Is the origination fee worth paying?

Only if the loan still beats the alternatives once the fee is counted. Compare APRs: a loan with no fee and a slightly higher rate is often cheaper, especially if you might repay it early.

Sources

Reviewed September 29, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.

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