1. Personal loan amount
This section is where you enter your loan amount. Some personal loan calculators have a default number, which could serve as a good starting point if you're unsure exactly how much you need to borrow. However, be sure to input whatever loan amount you're looking for if you're certain.
2. Personal loan interest rate
In this field, you input whatever interest rate you estimate the loan will have. If possible, try to enter your expected annual percentage rate (APR), which accounts for your interest rate and fees. The APR may better determine your total loan cost than the interest rate alone.
3. Personal loan term
The loan term field lets you choose the duration of time the lender will give you to repay the loan. A longer term tends to mean lower monthly payments but may lead to more interest and a higher overall loan cost. A shorter term may lead to higher monthly payments but can offer savings on interest, compared to a loan with a longer term.
How do you calculate a personal loan payment?
After you input all the numbers, a personal loan calculator may display a monthly payment amount, the total interest paid, and the overall repayment needed.
Let’s say, say you need a $20,000 loan, and your estimated APR is 12%. Here’s what you would pay with a 3-year repayment term compared to a 5-year term:
Monthly loan payment calculator: 3-year term
| Loan Amount |
$20,000 |
| Loan Term (years) |
3 |
| APR |
12% |
| Total Interest Paid |
$3,914.30 |
| Total Repayment |
$23,914.30 |
| Monthly Payment |
$664.29 |
With this plan, you would pay $23,914.30 on a $20,000 loan. Your monthly payment estimate would be approximately $664, and you would pay $3,914.30 in interest over the life of the loan.
Monthly loan payment calculator: 5-year term
| Loan Amount |
$20,000 |
| Loan Term (yrs) |
5 |
| APR |
12% |
| Total Interest Paid |
$6,693.34 |
| Total Repayment |
$26,693.34 |
| Monthly Payment |
$444.89 |
With this plan, you would pay $26,693.34 on a $20,000 loan. Your monthly payment estimate would reduce to approximately $445, but you would pay more in interest, totaling $6,693.34, by the end of the loan term.
After your personal loan calculation
After calculating your personal loan payment and understanding your desired terms, it's time to find a personal loan. You can apply for a personal loan with traditional banks, online lenders or credit unions. Once you pick a lender, you typically need to provide basic information like your name, address and Social Security number, as well as documents showing your income. If you’re approved, the amount of time it takes to get your funds can vary by lender.
Are Citi’s personal loans right for me?
Citi offers unsecured personal loans with zero fees and flexible terms to qualified applicants. You may also use pre-qualification to understand if you’re likely to qualify, and if so, what your loan terms might look like. Pre-qualification will not impact your credit, and you may use those estimates to help understand the potential costs of borrowing.
If you think you could benefit from a Citi® Personal Loan, you may apply online today.
FAQs: Personal loan calculators
Why use a personal loan calculator?
It can be hard to understand how a personal loan may help you if you don’t know the potential costs. A personal loan calculator can help you visualize how much you may have to pay every month and in the long term, making it easier to plan for a debt-free future. You may easily adjust the inputs, allowing you to find terms that fit into your plans.
How do I calculate my personal loan’s monthly payment?
Your personal loan payment can be calculated using your loan amount, APR and loan term. Using a personal loan calculator can help you easily calculate monthly payments, as well as how much you’ll pay in interest and overall.
How does my credit affect my monthly payment calculation?
Lenders generally look at your credit when deciding what your APR will be. Better credit typically means you’ll pay a lower interest rate for your personal loan.
This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
