Installment Loan Calculator

Use this installment loan calculator to find out what your monthly payments would be on a personal loan or other type of installment loan.

What is an installment loan?

An installment loan is money you borrowed that is paid back in regular installments of the same amount over a set period.

It is different than revolving credit, where the payment amount and time to pay off may fluctuate.

Find out how much monthly payments you need to pay on a loan.

How to use this calculatorHow to use calculator
  1. Loan Amount - Put the principal amount of your loan here. This is the total amount you plan on borrowing.
  2. Loan Term - Put the number of years or months you will have to pay back the loan. The longer you take to pay back the loan, the lower your payment will be.
  3. Yearly Interest Rate (APR) - Input your anticipated interest rate, or try several rates to see how your payments would be affected.

Monthly Payment

$ 0

Total principal paid


Total interest paid


Total amount paid


Compare Your Personal Loan Rates
Check Your Personal
Loan Rates
Choose a purpose for your loan
Always free and will not impact your credit score.

How the APR, the amount you borrow, and payback period determine your monthly payment

The numbers you use with the calculator determine your monthly payment by doing the following:

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Amount of your loan

The higher the loan amount, the higher your payments will be. By extending your loan term, getting a lower interest rate, or borrowing less money, you could end up with a lower payment.

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Interest rate

Unlike with credit cards, where your interest rate may change without much notice, your interest rate will stay the same throughout the life of your personal loan.

You can shop for the lowest interest rate to get lower payments.

The better your credit is, the lower your interest rate could be.

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Payback period

If you want to pay back your loan quickly, you will save money on interest, but your payments will be higher.

If you want the lowest payment possible, choose a longer time to pay back your loan.

How Installment Loans Work

Installment loans allow you to borrow an amount of money from a lender and repay the loan in equal monthly payments with a fixed interest rate.

Personal installment loans can be used for virtually any purpose besides business purposes, including debt consolidation, vacations, weddings, and really any other personal financial needs.

Taking advantage of the following tips, tricks, and suggestions will help you to get the most out of your loan and make your loan work for you.

Loan Duration

Before you decide the duration of your loan, consider the different factors that will affect your decision, including your monthly income, other monthly bills and expenses, and where you want your life and finances to be when the loan will end.

It may seem easier to pay $200 towards the loan each month, but you will ultimately end up paying double the amount than the initial loan that you borrowed.

A loan of $15,000 with a monthly payment of $200 will take 196 months to pay off, or about 16 years.

This also means that with an interest rate of 9.99%, you will end up paying $15,473.39, in addition to the $15,000 loan amount, you will end up paying $30,473.39.

Pay Your Loan Off Early

Like any other loan, the longer that you take to pay the amount back to the lender, the more interest you will accrue.

Consider paying your loan back early by adding more than what is required with each monthly payment.

It may require more budgeting each month over the duration of the loan, but this will ultimately save you money as your interest will have less time to accrue.

Shop Around for Lenders

Different lenders can cater to different needs that you may have. For example, some lenders specialize in providing loans for people with a lower credit score and a poor credit history.

Taking the time to shop around between various lenders can help to give you peace-of-mind that you are getting the best personal loan for you.

Search for the lender that will provide the most competitive interest rates and a loan duration that works the best for your current and future finances.

You can also use the offers from one lender to leverage a deal with another lender that you may prefer.

Apply with a Co-applicant or Cosigner

If you have a low credit score and a poor credit history, recently took out a different line of credit, or you don’t meet criteria set by the lender, you could be denied a personal loan.

A co-applicant or cosigner is someone who puts their name on the loan and therefore takes on a part of the responsibility for paying it off. If you can get someone with good credit to be your co-applicant, you may have a better change of getting a loan with good terms.

Don’t Take Out a Line of Credit Before Applying for a Personal Loan

When you request a new line of credit, the creditor will make an inquiry into your credit score and credit history.

Requesting a line of credit or other potential debt that is unrelated to the personal loan that you are requesting can hurt your credit score and therefore can hurt your ability to get the loan.

Make Sure You Can Pay Back Your Loan

Using a personal loan calculator is imperative to paying back your personal loan without it damaging your long-term financial health.

Knowing the amount that you are expected to pay back each month over the course of the duration of your loan can help you to avoid future issues with repaying your loan.

Calculating your monthly payment can help you avoid getting into more debt than you need to or anticipate.

Consider Purchasing Loan Insurance

Loan insurance guarantees that your loan will continue to be paid off if you are unable to make your payments.

However, the insurance only works in certain instances, such as death, illness, disability, and unemployment. Consult with your lender so you know what events are and are not covered by insurance before you pay for it.

Know Your Debt-to-Income Ratio

Your debt-to-income ratio (DTI) is the measure of how much debt you have relative to your income. The lower this number is, meaning the lower your debt and the higher your income (relatively speaking), lenders will be more willing to take you on.

A low DTI shows lenders that they are not taking on a large risk by lending to you. If you have a higher DTI, pay off some of your debt before applying for a personal loan.

Know Your Credit History

Your credit history gives lenders greater insight into your ability to pay back loans. Look at your credit score to ensure that it accurately reflects your financial history. If there is any incorrect information on your credit history, dispute it with the financial institution that the credit was through. Removing even one incorrect ding on your credit score can improve your score.

What Can You Use Installment Loans For?

Personal loans are desirable because they can be used for a multitude of reasons. The applications of personal loans outweigh their limitations.

Debt Consolidation

One of the primary uses of personal loans is debt consolidation . This is when you use your personal loan amount to pay off debt from multiple different sources.

Your debt is consolidated into one source, the lender from which you got your loan. This can also be useful to get rid of debt with high interest rates, therefore saving you money.

Moving Costs

Because moving costs are not covered by a home loan, personal loans are a good option to cover moving costs.

The cost of moving from one place of living to another is quite high and often people forget to account for this amount when purchasing a new home or moving into a new rental home.

Medical Bills

Often medical bills have no interest attached.

You can try to negotiate a no interest plan or request that your medical bill be lowered. However, if neither of these are options, a personal loan can be used to pay off medical bills and costs.

Home Improvement

Personal loans can be used for larger home repairs, home renovations , and general improvement projects. Unlike a home equity loan or home refinancing, you don’t use your home as collateral for an unsecured personal loan.

Unexpected Expenses

In the event of an emergency that results in unexpected costs, personal loans can be used. If you don’t have a savings amounts because of the high interest associated with these loans.

Frequently Asked Questions (FAQs)

Having all your auto loan questions answered is essential to getting the most out of your loan and making it work for you.

What will I need to apply for a loan?

While lenders have different requirements and criteria that you must meet to apply and qualify for a personal loan, there are a few requirements and criteria that are generally the same.
You will have to fill out a loan application with every lender that you apply to. The information that they request may vary, but typically it includes your income and employment history through paystubs, W-2s, or tax returns.

You’ll need to provide identification, usually a birth certificate, certificate of citizenship, driver’s license, or passport. They will ask for proof of address, usually a utility bill with your name and address on it, a lease or rental agreement or mortgage statement.

The lender will also do a hard credit pull, you will probably have to explain why you are applying for the loan, and you might be required to outline other monthly expenses. The goal of this is for the lender to be able to get a complete picture of your general financial wellbeing to ensure that you will be a reliable borrower.

Can I get a personal loan if I have a bad credit score?

Getting a personal loan is not impossible with a lower credit score, but it may take more work. You may be offered higher interest rates, as the lender is taking on a bigger risk by lending money to you.

Some lenders offer personal loans that are specifically made for people with lower credit scores.

Getting approved for a personal loan through a typical financial institution or getting a desirable interest rate may be more difficult.

Do your research and find a financial institution that specializes in loans for people with bad credit scores.

Are there things that I can’t use a loan for?

Each lender will vary on what you can and cannot use loans for.

A personal loan is desirable because in most cases it can be used for most things. If it is legal, you can use your personal loan on most things, except for houses, cars, and college tuition and fees.

To use a loan on a house, car, or your college tuition, you will have to apply for loans specifically for these things. Though there are some exceptions for buying a car, personal loans generally aren’t used on these purchases

What is the difference between hard credit pulls and soft credit pulls?

Soft credit pulls will not affect your credit score, but a hard credit pull will impact your credit score.

A soft credit pull happens when your credit score is just looked at, but you are not doing so because you are taking out a loan or getting a new credit card. A soft credit pull will only be visible to you when you are looking at your credit history.

A hard credit pull or inquiry is when a financial institution or lender looks at your credit score when determining whether or not to provide you with a loan or credit card. These inquiries are likely to negatively impact your score only by a few points.

It’s important to not do a hard credit pull before you request a major loan or credit card and to not request many hard pulls in a short span of time.

Why do interest rates tend to be higher on personal loans?

With auto and home loans, if you do not make your monthly payments on time and to the full amount, the threat of you vehicle being repossessed or losing your home to foreclosure operates as a sort of “collateral.”

However, with a personal loan there is no physical asset that can operate as collateral, making them unsecured loans. This means that interest rates are usually higher on personal loans to incentivize you to make your monthly payments on time and to the full amount.