ECONOMY STUDIOLoan calculator
Monthly payment, total interest and payoff date for any fixed-rate loan, starting from the Federal Reserve's average personal loan rate: 11.90%.
- Total interest
- $1,940
- Total paid
- $11,940
- Paid off in
- 3 years
- Paid off by
- November 2029
Borrowing $10,000 for 3 years at 11.90% costs $331.67 a month, $1,940 in interest in all.
At the average credit card rate (22.36%), paying off the same $10,000 over the same time would cost $3,816 in interest, $1,876 more.
Every 1 point higher rate adds about $4.79 to the monthly payment.
Payoff schedule, year by year
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | $2,947 | $1,033 | $7,053 |
| 2 | $3,318 | $662 | $3,735 |
| 3 | $3,735 | $245 | $0 |
How it works
The calculator uses the standard fixed-rate loan formula and builds the payment schedule month by month. It starts from the Federal Reserve's average rate for a 24-month personal loan at commercial banks; the rate you are offered can be higher or lower.
For a home or a car, the mortgage calculator and car loan calculator add taxes, down payments and trade-ins. Paying off a card instead? Try the credit card payoff calculator.
Questions
How is a loan payment calculated?
With the standard fixed-rate formula: payment = loan × r ÷ (1 − (1 + r)−n), where r is the yearly rate ÷ 12 and n is the number of monthly payments. Each payment covers that month's interest first; the rest pays down the balance.
What is the average personal loan rate?
11.90% for a 24-month personal loan at commercial banks in August 2026, according to the Federal Reserve (G.19 consumer credit report). The rate a lender offers you depends on your credit and income.
Is a personal loan cheaper than a credit card?
On average, yes: credit card accounts that pay interest averaged 22.36% in August 2026, against 11.90% for a 24-month personal loan (Federal Reserve). The calculator compares the interest on the same balance at both rates.
Does paying extra each month help?
Every extra dollar goes straight to the balance, so it cuts the interest on all later months and ends the loan sooner. Enter an amount under "Extra payment" to see how much interest it saves. Some lenders charge a prepayment fee; check your loan terms.
What isn't included?
Origination fees, late fees and insurance. Some lenders take an origination fee out of the loan amount, which raises the real cost (the APR) above the interest rate.
Sources
- Federal Reserve, G.19 Consumer Credit (finance rates)
- 24-month personal loan rate (FRED TERMCBPER24NS)
- Credit card rate, accounts assessed interest (FRED TERMCBCCINTNS)
- CFPB, What is the difference between a loan interest rate and the APR?
Educational tool, not financial advice. Results are estimates from the numbers you enter; lenders and banks calculate in their own ways. Default rates update automatically from official data.