Estimate the monthly payment and true cost of a personal loan — including the origination fee that's deducted before the money hits your account.
Understanding Personal Loan Costs
Personal loans are unsecured installment loans used for debt consolidation, big purchases, or emergencies. Two costs matter: the interest you pay over the life of the loan, and the origination fee many lenders deduct from your loan amount up front. This calculator shows both, plus the amount you actually receive.
The Origination Fee Trap
A 5% origination fee on a $15,000 loan means you only receive $14,250 — but you still repay interest on the full $15,000. That's why the advertised interest rate can understate the true cost. If you need a specific amount in hand, you may have to borrow more to cover the fee.
Tip: Compare lenders on APR, which folds the origination fee into a single annual percentage. A loan with a lower interest rate but a high fee can cost more than one with a slightly higher rate and no fee.
When a Personal Loan Makes Sense
Personal loans often beat credit cards for large, planned expenses because they carry a fixed rate and a fixed payoff date. Consolidating high-interest credit card debt into a lower-rate personal loan can save money — as long as you don't run the cards back up.
Frequently Asked Questions
What is an origination fee?
An origination fee is a one-time charge, usually 1%–8% of the loan, that the lender deducts from your loan proceeds or adds to the balance. It compensates the lender for processing the loan and raises your effective cost above the stated interest rate.
How much can I borrow with a personal loan?
Most personal loans range from about $1,000 to $50,000, though some lenders go higher. The amount you qualify for depends on your income, credit score, and existing debt. Your rate also depends heavily on credit score.
Is a personal loan better than a credit card?
For large, planned expenses a personal loan is usually cheaper because it has a fixed rate and a set payoff date, while credit cards carry high variable rates. For small or short-term needs that you can repay quickly, a card may be more convenient.
What credit score do I need?
The best personal loan rates typically go to borrowers with scores above 720. Many lenders approve scores in the 600s but at higher rates. Below about 580, options are limited and expensive.
Can I pay off a personal loan early?
Most personal loans have no prepayment penalty, so paying early saves interest. Always confirm with your lender before signing, since a few charge a fee for early payoff.