Finance calculator
Standalone tool pagePersonal Loan Calculator (APR)
Calculate your monthly personal loan payments and discover the real Annual Percentage Rate (APR) when upfront fees or loan insurance are included.
Loan summary
Monthly Payment
Real APR
Total Interest
Net Amount Received
How It Works
This calculator figures out your standard monthly payment using the principal, interest rate, and term. It then calculates the Real APR by considering the actual net cash you receive after upfront fees and insurance are deducted. The APR is solved using numerical methods to find the true cost of borrowing.
Example
If you borrow $10,000 at 10% for 36 months, your monthly payment is about $322.67. But if there is a 5% loan insurance fee ($500), you only receive $9,500. You still pay back $10,000 plus interest, making your Real APR much higher than 10%.
When to use this calculator
- When comparing personal loans that have different fee structures.
- To understand the true cost of loan insurance and upfront fees.
Understanding the inputs
- Principal is the amount you are borrowing before fees.
- Upfront fees and insurance reduce the actual cash you receive.
- The term affects how much total interest you pay over the life of the loan.
Frequently Asked Questions
What is APR?
Annual Percentage Rate (APR) reflects the true cost of borrowing, including the interest rate and any upfront fees or insurance.
Why is the APR higher than the interest rate?
When upfront fees or loan insurance are deducted from the loan amount, you receive less money than you borrow, but you still pay interest on the full amount. This increases the effective cost.
How is the monthly payment calculated?
The monthly payment is calculated using the standard amortizing loan formula based on the principal amount, interest rate, and term.