Personal Loan Calculator

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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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How to use our personal loan calculator

Written by Carol Pope | Edited by Jessica Sain-Baird | Reviewed January 23, 2025

Before using our personal loan calculator, you need to have an idea of what interest rates you qualify for. Check rates for free on our expertly-curated network of lenders (America’s largest). Once you know what rates you might get, calculate your personal loan payments in three simple steps.

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Enter a loan amount.

Tell us how much you’re thinking about borrowing. Personal loans can be helpful, but only borrow what you truly need so you don’t take on unnecessary debt.

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Key in your estimated rate.

Use the average interest rate across all of your loan offers. Or you could check your credit score with LendingTree Spring. Then, use the table in the next section to get an idea of what rates may apply to you.

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Choose a loan term.

Your loan term is the length of time you have to pay off your loan. A longer term typically means lower monthly payments but more overall interest. Choose the shortest term you can comfortably manage in order to save.

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What is a good personal loan rate?

Personal loan rates are just that — personal. A good personal loan rate is the lowest rate you can get. If you have bad credit, you may not qualify for a personal loan at all. If you do qualify, expect higher interest rates.

Use our data to see if the rate in your loan offer is competitive. Below, you’ll find average APRs for loans closed on LendingTree’s loan marketplace. Find your credit score and see how your personal loan rate compares.

Credit score rangeAverage APRAverage loan amount
720+17.43%$18,523
680-71930.65%$14,395
660-67944.74%$9,942
640-65958.24%$7,941
620-63975.18%$6,114
580-619117.65%$4,432
560-579160.30%$3,311
Less than 560191.19%$2,579

Source: LendingTree user data on personal loans that were approved and funded in the third quarter of 2024.

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APR vs. interest rate, and what about origination fees?

On your loan offers, you will see your APR, or annual percentage rate. Our personal loan payment calculator uses “interest rate” and “APR” interchangeably, but they’re technically not the same things.

Your APR measures the total cost of your loan, including interest and fees. Some lenders charge an origination fee, which is an amount of money it will deduct from your loan before sending it to you.

You’re more likely to encounter an origination fee if you have fair or bad credit, but some lenders add them to every loan, regardless of your credit score.

How to calculate interest on a loan
 
Unlike with a credit card, payments on a personal loan stay the same each month. Personal loans have fixed interest rates, which means they won’t change as you pay off your loan.

Over time, less and less of that monthly payment will go toward interest and more will go toward your principal — the money you borrowed — until the loan is paid off.

Our personal loan calculator figures out principal and interest for you. But for more info, read these instructions on how to calculate interest on a loan.

How to get a better personal loan rate

 If possible, get offers from at least six lenders

Just like with insurance, shopping around is key to finding the cheapest personal loan. That’s because each lender has its own way of calculating rates.

For instance, Lender A uses your level of education when deciding what rate to charge, but Lender B does not. Depending on how far you went in school, one of the lenders might be better for you than the other.

How many lenders should you shop with? According to a LendingTree study, the sweet spot is six. On average, loan shoppers with credit scores between 640 and 679 saved up $3,138 by comparing offers from at least six lenders.

 Apply for a smaller loan with a shorter term

Lenders give their best rates to borrowers who are lower risk (or the least likely to stop paying their loan). An effective way to make yourself less risky to a lender is to apply for a smaller loan with a shorter repayment term.

A smaller loan means the lender will lose less money if you default on your loan (and payments are usually more manageable). And the shorter your loan term, the less time you have to fall behind.

 Add a friend or family member to your loan

Getting a joint loan with another person can help you get a lower interest rate, especially if that person has excellent credit.

On joint loans, both you and your co-borrower are equally responsible for the loan, and missing payments affect both of your credit scores. Choose your co-borrower carefully and hold up your end of the bargain to avoid a ruined relationship.

 Offer collateral

A secured loan is a loan that requires collateral. Collateral is a piece of your property that your lender has the legal right to repossess if you stop making loan payments. Some popular forms of personal loan collateral include your car or your savings/investment account.

Lenders give lower rates on secured loans because it has repossession at its disposal. Not only are you more likely to continue paying to avoid losing your collateral, the lender can make up some of its losses through repossession.

 Improve your credit score

Improving your credit score increases your chances of getting a low rate. In fact, a LendingTree study shows that raising your score from fair to very good could save you over $22,000 in loan and credit card interest.

Work on paying down debts, always make your payments on time and dispute any errors on your credit report you might find.

Frequently asked questions

The monthly payment amount for a $15,000 loan depends on your interest rate and repayment term. The higher your interest rate, the higher your monthly payment will be, and the longer you stretch out payments, the lower your payment will be.
 
For instance, a three-year $15,000 loan with a 12% interest rate will come with a monthly payment of $498. The same loan with a five-year term comes with a $334 monthly payment.

Yes — most personal loan lenders allow you to pay off your loan early without charging a prepayment penalty. This fee is more common among mortgage companies, but it’s a good idea to check with your lender before repaying your personal loan early.

You may still qualify for a personal loan if your credit needs some work, but it can be difficult. If you need a loan before you have a chance to improve your credit score, you can apply for a bad credit personal loan with a reputable lender. However, you’re likely to pay a high interest rate if you’re approved.