NerdWallet’s free personal loan calculator can give you an estimate of how much a loan might cost and whether it will be an affordable option.
If you know how much you want to borrow, you can use our loan calculator to work out what your estimated monthly repayments may be.
Or, if you know what you can afford to repay each month, you can also use it to work out how much you can afford to borrow.
Loan calculator: work out whether a loan is right for you
» MORE: Compare personal loans and rates
How to use our personal loan calculator
You can use our personal loan calculator both as a loan repayment calculator and an affordability calculator.
- ‘Calculate monthly repayments’ helps you work out how much you would need to repay each month if you have a particular amount you want to borrow in mind.
- ‘Calculate what I can afford’ helps you work out how much you could potentially afford to borrow, based on how much you can pay back monthly.
Whatever you want to calculate, you can adjust the repayment term and the annual percentage rate (APR) to see how this affects the amount you can borrow, your monthly repayments and the total cost of the loan.
The results generated by the calculators assume that the interest rate is fixed for the whole loan term and that you make the agreed minimum payments each month.
Calculate monthly repayments using the loan repayment calculator
Follow these steps if you know how much you want to borrow and want to work out what you would repay each month.
- Click on ‘calculate monthly repayments’ on the calculator.
- Enter the total amount you want to borrow, the time you want to borrow it for, and the APR.
- Press calculate to see how much your monthly payments would be, based on the information provided.
The calculator will also show how much you would pay in interest and how much you would repay in total over the term of the loan.
Calculate what you can afford using the affordability calculator
Follow these steps if you know how much you can afford to repay each month and want to find an estimate of how much you can afford to borrow.
- Click on ‘calculate what I can afford’ on the calculator.
- Input the amount you would like to repay each month, the length of your preferred loan term, and the APR.
- Press calculate to get an idea of the size of the loan based on the information you have provided.
You will also see how much you would pay in interest and fees and the total amount repayable.
Why should I use a loan calculator?
A loan calculator is a quick, simple, and free way to see whether a loan may be affordable or not. By entering the amount you want to borrow, or the amount you can afford to repay each month, you can adjust other variables like APR to see what is achievable and affordable for you may be able to afford your situation.
An online loan calculator can only give you an indication and it’s not a guarantee that you’ll be able to borrow this amount if you apply for a loan.
However, using one can help you plan before applying for a loan. It can help you understand how much repayments might cost and the interest you might pay over different loan terms. It can help you decide whether borrowing is right for you in the first place.
Does a loan calculator affect your credit score?
Using a loan calculator won’t affect your credit score. The results are based only on the information you put into the calculator – it can’t look at information from your credit history.
Your credit history may only be affected if you choose to formally apply for a loan. Lenders will usually perform a hard credit check as part of the application process to see how you have managed your finances and credit commitments, and this check is recorded on your credit file.
Is a loan calculator the same as an eligibility checker?
Loan calculators are different to eligibility checkers.
While they can both give you an idea of the monthly repayment, a loan calculator only acts as a rough guide because it is just based on the numbers you provide. It isn’t tailored to your individual situation and it doesn’t take your credit score into account.
However, when you use an eligibility checker, you will need to input some personal and financial details, such as your income, expenditure, employment status and contact information to get a more accurate and personalised estimate of which loans you qualify for.
The provider will also run a soft credit check. This check won’t appear on your credit history or affect your score.
Once you have completed the eligibility checker, you will be able to see how likely it is that you’ll be accepted for a loan and the interest rates you could get.
Because the eligibility checker uses more detailed information, it could give you a personalised interest rate and you may find the results are different to those on a loan calculator.
If all the information you provided is accurate, you are more likely to be approved if you choose to apply for the loan. However, you are not guaranteed to get the rate or loan quoted in the results of your eligibility check.
What is APR on a loan?
Our loan calculator requires you to enter an APR, or annual percentage rate. The APR is a figure that tells you the total cost of a loan over one year, taking into account the rate of interest plus any compulsory fees the lender charges.
Looking at the APR can make it easier to compare loans and credit options between lenders, minimising the risk of getting caught out by loans with lower interest rates but expensive hidden fees.
The APR does not include extra charges, such as any early or late repayment fees.
Lenders must provide what is known as a representative APR. However, not everyone will necessarily be offered the advertised rate. Representative APR means that 51% of approved loan applicants will have this rate or lower, while the remaining 49% will get a different rate that will often be higher.
How to apply for a personal loan
You can check your eligibility and apply for a personal loan online. You will usually need to give the lender information such as your address, income and employment details.
Before applying for a loan, it’s a good idea to get your finances in order and to take time preparing your application.
You can use a loan calculator to indicate monthly payments. But, to increase your chances of approval and to get the best rates, you could look into improving your credit score.
It’s also worth comparing loans from different providers, as this could help you to find a loan that is most suitable for your requirements.
Checking your eligibility for a loan before formally applying won’t affect your credit score and it can show you how likely you are to be approved.
Loan applications usually involve a hard credit check which can affect your credit score, so you should only apply for a loan if you are confident of being accepted. Too many hard credit checks in a short space of time can indicate that you’re experiencing financial difficulties, potentially meaning that lenders will view you as risky.
» MORE: How to get a loan
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