myUSFinance

1. Enter your Loan Amount ($) — This value represents your loan amount
2. Enter your Interest Rate (%) — This value represents your interest rate
3. Enter your Loan Term (months) — This value represents your loan term (months
4. Click Calculate — Review your results in the output section below the form. The calculator instantly computes all values based on your inputs.
5. Adjust and Compare — Modify any input to see how changes affect the result. Try different scenarios to find the optimal approach for your situation.

All calculations are performed instantly in your browser. Your data is never sent to any server or stored anywhere — your financial information remains completely private.

Where:

• P — Principal — the loan amount borrowed
• r — Monthly interest rate (annual APR ÷ 12)
• n — Total number of monthly payments (loan term in months)

Worked Example

Borrowing $15,000 at 9.5% APR for 36 months. Monthly rate: 0.792%. Payment = $15,000 × [0.00792 × 1.00792^36] / [1.00792^36 - 1] = $480. Total payments: $17,280. Total interest: $2,280.

Limitations and Assumptions

Personal loan rates range from 6% to 36% depending on credit score, income, and lender. Origination fees of 1-8% are common and may be deducted from your loan proceeds. Compare the APR (which includes fees) rather than just the interest rate. Credit unions and online lenders often offer more competitive rates than traditional banks for personal loans.

Understanding the following key concepts will help you interpret your results and make better financial decisions:

• Principal — The initial amount of money involved in the calculation, whether it is a starting balance, loan amount, or investment.
• Interest Rate — The percentage charged or earned on the principal amount, typically expressed as an annual rate (APR). This rate determines how quickly your money grows or how much borrowing costs.
• Compounding — The process of earning interest on previously earned interest. More frequent compounding (daily vs. monthly vs. annually) results in higher effective returns or costs.
• Time Horizon — The length of time over which the calculation applies. Longer time horizons amplify the effects of compounding and small differences in rates.
• Present Value vs. Future Value — Present value is what money is worth today; future value is what it will be worth at a specific point in the future, accounting for growth or inflation.

These concepts form the foundation of virtually all financial calculations. Understanding how they interact helps you evaluate any financial product or decision with confidence.

Let's walk through a practical example using this calculator.

Scenario: Sarah is considering a $25,000 personal loan to consolidate credit card debt. She has received offers from two lenders:

• Lender A: 8.5% APR, 36-month term — Monthly payment: $789, Total interest: $3,404
• Lender B: 7.2% APR, 48-month term — Monthly payment: $601, Total interest: $3,848

While Lender B offers a lower monthly payment ($188 less per month), Sarah would pay $444 more in total interest over the life of the loan. If her budget can handle the higher payment, Lender A saves money overall. However, if cash flow is tight, Lender B provides more breathing room.

Sarah decides to go with Lender A's rate but asks about a 48-month option: 8.5% APR for 48 months gives her a $615 monthly payment with $4,520 in total interest. She settles on the 36-month term and plans to apply the $188 monthly savings compared to Lender B toward her emergency fund.