Question 1

How is a personal loan monthly payment calculated?

Accepted Answer

The standard amortization formula is Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (APR ÷ 12), and n is the number of months. This spreads principal and interest evenly across every payment.

Question 2

What is a good APR for a personal loan?

Accepted Answer

As of 2026, excellent-credit borrowers (760+) typically qualify for 7-10% APR, good credit (700-759) sees 10-15%, and fair credit (640-699) sees 15-25%. Rates above 28% are considered predatory — consider a credit-builder loan or secured alternative instead.

Question 3

What loan term should I choose?

Accepted Answer

Personal loans usually run 12-84 months. Shorter terms (24-36) cost the least interest but raise your monthly payment. Longer terms (60-84) lower the payment but can double your total interest. Aim for the shortest term whose payment fits your budget comfortably.

Question 4

Are my loan details sent to a server?

Accepted Answer

No. All math runs entirely in your browser. Nothing is uploaded, stored, or shared — the calculator never touches a server.