Personal loan calculator

Effective APR ≠ disclosed APR when there's an origination fee

If a lender quotes 11.99% APR with a 5% origination fee, you receive only 95% of the loan amount but pay interest on the full 100%. The effective APR — what you're really paying when you account for the fee — is meaningfully higher (typically 13-14% in this example). We solve numerically for the rate that makes your payments equal to the cash you actually received.

Monthly payment uses standard amortization

We use the standard amortization formula: payment = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan principal (face amount, not cash received), r is the monthly rate (APR ÷ 12), and n is the number of months. Each payment splits between interest and principal, with principal share growing over time.

Comparison vs current debt assumes equal monthly payment

We hold your monthly payment constant and ask: how much interest would you pay carrying the same balance at your current debt's APR for the same number of months? The difference between that and the personal loan's interest is your savings. If your current debt is at 24-29% credit card APR, even a 12-15% personal loan typically saves $5,000+ on $20K of debt over 5 years.

Origination fee is deducted, not added

Origination fees are taken from the loan proceeds before they hit your bank account. You owe interest on the full face value but receive less. This is the opposite of how some other loan fees work (e.g., closing costs that get rolled into the loan). LightStream and Discover charge zero origination fees — what you see is what you pay.