📊 Did You Know?
The average personal loan APR in March 2026 is 12.26% for a 700 FICO score borrower (Bankrate, March 2026). The average personal loan balance is $11,699 (LendingTree, Q4 2025).
How to Use This Calculator
- Enter the amount you want to borrow (principal).
- Enter APR and term length to compute the monthly payment.
- Compare total interest across terms to see the true cost of “lower monthly” options.
The Formula Explained
Monthly Payment = P[r(1+r)^n] / [(1+r)^n - 1]This is standard amortization math for fixed-payment loans. Early payments include more interest; later payments include more principal. That’s why shortening term can cut total interest dramatically.
Tips & What Your Results Mean
The monthly payment answers “can I afford this?” but total interest answers “is this worth it?” If you’re choosing between a 36-month and 60-month loan, the longer term may look easier monthly but can be much more expensive overall.
For debt consolidation, compare your current effective APR (or blended APR across debts) to the new loan APR. Consolidation works best when APR drops and you avoid re-borrowing on the paid-off balances.
Use a buffer APR when planning. If your pre-approval is 11% but you might end up at 13%, test both. The difference can be meaningful on multi-year terms.
If you can afford a small extra payment each month, try it. Extra principal reduces future interest and often improves payoff speed more than people expect.
Frequently Asked Questions
What is the average personal loan APR in 2026?
A useful reference point is about 12.26% APR for a 700 FICO borrower (Bankrate, March 2026). Your actual APR depends on credit score, income, and lender.
What is the average personal loan balance?
A commonly cited figure is $11,699 as of Q4 2025 (LendingTree, Q4 2025). Use this as context for “typical” loan sizing, but base decisions on your own cash flow.
Should I choose the lowest monthly payment?
Not always. Longer terms reduce monthly payment but can substantially increase total interest. Compare total cost, not just the monthly number.
How do extra payments affect payoff?
Extra payments reduce principal faster, which reduces future interest. Even small extra monthly amounts can shorten the term and lower total interest meaningfully.
What’s the loan payment formula?
Monthly Payment = P[r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly rate, and n is number of payments.