How to use this personal loan calculator
Enter the loan amount, the interest rate (APR), your term in years, and any origination fee. You'll instantly see your monthly payment, the total interest over the life of the loan, and the all-in cost including fees.
Secured vs unsecured loans — what's the difference?
The single biggest distinction between personal loans is whether they're secured or unsecured. It changes your rate, how much you can borrow, and what's at risk if things go wrong.
Secured loan
- Backed by collateral — a car, savings account, CD, or home.
- Lower interest rates — less risk for the lender.
- Higher borrowing limits and easier approval with weaker credit.
- The catch: miss payments and the lender can seize the asset.
Unsecured loan
- No collateral — approved on your credit and income alone.
- Higher interest rates — the lender takes on more risk.
- Stronger credit usually required for the best rates.
- The upside: your assets aren't directly on the line.
What affects your rate
- Credit score — the biggest driver of your APR.
- Loan term — longer terms lower the payment but raise total interest.
- Secured vs unsecured — collateral typically earns a lower rate.
- Origination fees — an upfront 1–8% cut that raises your true cost.
Frequently asked questions
Secured vs unsecured — what's the difference?
Secured loans are backed by collateral (lower rates, but the asset is at risk); unsecured loans rely on your credit alone (higher rates, assets protected).
How is the payment calculated?
It's amortized: a fixed monthly payment from your amount, APR, and term — early payments are mostly interest, later ones mostly principal.
What is an origination fee?
An upfront charge (often 1–8% of the loan) some lenders deduct for processing — it raises your true cost, so include it above.
Are personal loans secured or unsecured?
Most are unsecured, but some lenders offer secured personal loans for a lower rate. Always check before signing.
Related calculators & guides
This calculator is for educational and planning purposes only and provides estimates, not financial advice. Actual rates, fees, and terms vary by lender and credit profile. See how we calculate.