Personal Loan Calculator
A personal loan's monthly payment is only half the story. The origination fee — deducted before the money ever reaches your account — means you receive less cash than you borrow but still pay interest on the full balance. This calculator shows the payment, the total interest, the cash you'd actually walk away with, and the true APR once that fee is baked in.
How much you want to borrow.
Annual rate the lender quotes, before the origination fee.
How long you'll take to pay it back.
Taken out of your loan before the money hits your account. Often 1%–10%.
60-month term · 15.82% effective APR
$368 per month
- Principal
- $16,000
- Interest
- $6,090
- Origination fee
- $800
- Cash to you (after fee)
- $15,200
- Total interest
- $6,090
- Effective APR
- 15.82%
- Total cost
- $22,890
Free during pilot
How the payment is built
The monthly payment comes from the standard amortizing-loan formula at your stated rate over the term you choose. Interest accrues on the outstanding balance each month, the rest of the payment reduces the balance, and the loan reaches zero on the final payment.
Monthly = P × (r(1+r)ⁿ) / ((1+r)ⁿ − 1)
where P is the loan amount, r is the monthly rate (annual rate ÷ 12), and n is the number of months.
Why the origination fee changes the math
The fee is deducted from your disbursement, so on a loan of P with a fee rate f, you receive P × (1 − f) in cash — but you repay interest on the full P. To get the true APR, we solve for the rate that makes the present value of your payments equal the cash you actually received, using Newton's method until it converges within one cent. The bigger the fee, the wider the gap between the stated rate and the APR.
What this calculator doesn't model
- Autopay and other rate discounts. Many lenders shave 0.25%–0.50% off the rate for autopay. Enter your discounted rate if it applies.
- Prepayment. Paying ahead lowers total interest; reputable personal loans have no prepayment penalty, but confirm before you sign.
- Late fees and insurance add-ons. These vary by lender and aren't part of the base cost.
Frequently asked questions
How is the monthly payment on a personal loan calculated?
We use the standard amortizing-loan formula: your monthly payment is the amount that pays off the full balance, plus interest, in equal installments over the term. Each payment covers that month's interest first, and the rest reduces the balance — so early payments are mostly interest and later ones are mostly principal.
What is an origination fee, and why does it matter?
An origination fee is a one-time charge — usually 1% to 10% of the loan — that the lender deducts from your loan before depositing the money. On a $16,000 loan with a 5% fee, $800 is skimmed off the top and you receive $15,200, but you still repay interest on the full $16,000. That's why the APR is higher than the stated rate.
What's the difference between the interest rate and the APR?
The interest rate is the cost of borrowing the principal. APR (annual percentage rate) folds the origination fee into a single rate, so it reflects the true cost of the loan. Because the fee is taken out upfront, you receive less cash than the balance implies — which pushes the APR above the stated rate.
Does TrueOwn offer personal loans?
No. TrueOwn is a mortgage-monitoring product — we watch your home loan for PMI cancellation, escrow overcharges, and refinance windows. This calculator is a free planning tool, not a loan offer, and the numbers are estimates only.
By TrueOwn Editorial · Methodology last reviewed: June 19, 2026.
Estimates only — not a loan offer, a rate quote, or a TILA (Truth in Lending Act) disclosure. Actual rates, fees, and terms depend on your credit, income, and the lender. TrueOwn does not originate personal loans. The effective APR here treats the entire origination fee as a prepaid finance charge, which may differ from a lender's disclosed APR.