Personal Loan Calculator

Q: What is a typical personal loan interest rate?

Rates span roughly 7% to 36% APR depending on credit score. Excellent credit (740+) commonly sees 7%-12%; fair credit often lands in the 18%-28% range. Personal loans are unsecured, so rates run higher than mortgages or auto loans.

Q: What is an origination fee?

A one-time fee of about 1%-10% of the loan amount, usually deducted from the money you receive. Borrow $10,000 with a 5% fee and you receive $9,500 but repay interest on the full $10,000 — which is why the true APR exceeds the stated rate.

Q: Can I pay off a personal loan early?

Most personal loans have no prepayment penalty, so paying early saves interest. Check your agreement — a small minority of lenders do charge one.

The payment and the true cost — including the origination fee most lenders deduct before the money ever reaches you.

Monthly payment

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Cash you actually receive

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Total interest

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Total cost (interest + fee)

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Effective APR (with fee)

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How the origination fee changes the math

The payment is computed on the full amount you borrow, but the fee is subtracted from what you receive:

Cash received = Amount − (Amount × fee %)
Payment = standard amortization on the full amount

Worked example

Borrow $10,000 at 11% for 3 years with a 5% fee:

You receive $9,500, but pay $327.39/mo on the full $10,000 → interest $1,786 + fee $500 = $2,286 total cost.

Effective APR on the cash you actually got: about 14.5% — noticeably above the stated 11%.

Shopping smart for a personal loan

Compare offers by APR, not stated rate — the fee is where quotes hide their cost. Prequalify with several lenders (soft credit pulls don't affect your score), and check whether a credit union beats online lenders; they often do for good credit. If the purpose is consolidating cards, run the consolidation calculator to confirm the new rate actually saves money after fees, and if you own a home, weigh a home equity loan — cheaper, but it puts your house behind the debt.

Frequently asked questions

What is a typical personal loan interest rate?

Roughly 7%–36% APR by credit tier: excellent credit sees 7%–12%, fair credit often 18%–28%.

What is an origination fee?

A 1%–10% one-time fee deducted from your proceeds — you repay interest on money you never received, raising the effective APR.

Can I pay off a personal loan early?

Usually yes without penalty — but verify your agreement before signing.

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Note: Effective APR here is an estimate found numerically from the fee-adjusted cash flow. Actual offers vary by lender and credit profile. Not financial advice. Last reviewed: July 2026.