Loan Details
Unsecured personal loans. Rate depends heavily on credit score — shop multiple lenders and compare APR, not just the advertised rate.
Monthly Repayment
Repayment Schedule
| Month | Opening Balance | Payment | Principal | Interest | Closing Balance |
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Why the Advertised Rate Isn't the Real Cost
Fees compound the rate
A 2% origination fee on a 12% loan doesn't just add 2% total — it raises your effective APR because you're paying interest on money you never actually received. Longer terms make this worse relative to the headline rate.
APR is the only fair comparison
Two loans with the same advertised rate can have very different true costs once fees and compounding are factored in. Effective APR — not the headline rate — is the only number that lets you compare offers apples-to-apples.
Short-term credit hides the worst rates
A "small flat fee" on a short-term loan can translate into a triple-digit effective APR once annualised. Always convert fees and short terms into an annual rate before judging affordability.
Affordability beats "can I get approved"
Being approved for a loan isn't the same as being able to comfortably repay it. A common rule of thumb: total debt repayments shouldn't exceed 30–35% of take-home income.
Frequently Asked Questions
What's the difference between the interest rate and the APR?
The interest rate is just the cost of borrowing the principal. The APR (annual percentage rate) folds in fees and the timing of payments, giving you the true annualised cost of the loan — always compare APR, not the headline rate.
How does a processing fee affect my real cost?
A one-time fee (often 1–5%) is deducted before you receive the funds, but you still repay the full loan amount. Borrow $10,000 at a 2% fee: you receive $9,800 but repay based on the full $10,000 — which pushes your true APR above the advertised rate.
How much loan can I afford?
A common guideline: total monthly debt repayments should stay under 30–35% of your take-home income. Above 40% you're at meaningfully higher risk of default if your income dips. Use the income field above to check your repayment-to-income ratio.
Can I pay off a loan early to save money?
Usually yes, and it typically saves interest since amortising loans are front-loaded with interest. Check for prepayment penalties first — some lenders charge 1–3% of the outstanding balance for paying off early.
Does this work for any currency?
Yes — the calculator works in relative terms (rates, percentages, ratios), so switch the currency selector to see results formatted in your local currency. The math is identical regardless of currency.