Personal Loan Calculator
Enter your loan details to see your monthly payment, total interest cost, and get a Worth It Score. For debt consolidation, see exactly how much you'd save.
$1,000 – $100,000
Enter 0 if none (SoFi charges $0)
Average rate across the debt you'd be consolidating
Illustrative rates by credit score (assumptions, not quotes)
Sources & Methodology
By Sean Baldwin · Last updated
The Verdict
Worth it if: your total interest comes in under 15% of the amount you're borrowing, that's a low-cost loan relative to what you're financing.
Not worth it if: your total interest runs 40% or more of the principal, at that point you're paying nearly as much in interest as you borrowed.
Break-even threshold: the cost profile turns favorable under a 15% interest-to-principal ratio; above 60% the loan is expensive by any standard.
Frequently Asked Questions
What is a good interest rate for a personal loan in 2026?
The Federal Reserve reported that commercial banks' average rate on 24-month personal loans was 11.86% in May 2026 (G.19 consumer credit release). What you are offered depends on your credit, income and lender, and a lower score generally means a higher rate. If you are offered a very high rate, improving your credit score first or using a secured loan may make more sense.
How much can I borrow with a personal loan?
Lenders set their own minimum and maximum loan amounts, so check each lender's range. The amount you qualify for depends on your credit score, income, and existing debt-to-income ratio.
What's the difference between a personal loan and a credit card?
A personal loan gives you a lump sum at a fixed interest rate with fixed monthly payments over a set term. A credit card is revolving credit, you can borrow and repay repeatedly, but interest compounds daily if you carry a balance. For large expenses you need more than 12 months to pay off, a personal loan almost always costs less.
Does applying for a personal loan hurt my credit?
Rate-checking (pre-qualification) uses a soft pull and doesn't affect your score. A formal application triggers a hard pull, which temporarily drops your score by 5–10 points. Shopping multiple lenders within 14–45 days counts as one inquiry under FICO scoring.
What is an origination fee on a personal loan?
An origination fee is a one-time charge deducted from your loan proceeds before you receive the money. It is usually a percentage of the loan amount, and it varies by lender. A $15,000 loan with a 3% origination fee means you receive $14,550 but repay the full $15,000 plus interest. Some lenders charge no origination fee, so compare offers.
Is a personal loan good for debt consolidation?
Yes, if your personal loan rate is lower than your existing debt's average rate, consolidating saves money in interest and simplifies payments into one. Compare the total cost, including any fees, of the new loan against what you would pay on your current debt. A rate several points lower usually makes consolidation worthwhile.
How personal loan interest rates are set, and what moves them
Personal loan rates are primarily driven by your credit score, debt-to-income ratio, income, and loan term. Credit score is a major factor: a higher score generally means a lower rate. Lenders also look at your DTI ratio (monthly debt payments divided by gross monthly income), and a lower ratio generally helps. Loan term also affects rate: shorter terms typically get lower rates because there's less risk of default over a shorter period.
Personal loan vs. credit card vs. HELOC: which is right for your situation
For smaller amounts you can pay off in under 12 months: a 0% intro APR credit card (if you qualify) can beat a personal loan on cost. For larger amounts over several years: a personal loan at a fixed rate gives predictable payments and often beats carrying a credit card balance. For large home-related expenses: a HELOC may offer a lower rate because it's secured by your home, but comes with variable rates and the risk of losing your home if you can't repay. For debt consolidation: a personal loan is often better than continuing to carry revolving credit card debt at a high APR (the Federal Reserve reported a 22.15% average in May 2026).
The true cost of origination fees
Origination fees sound small as a percentage but matter significantly in dollar terms. A 5% origination fee on a $30,000 loan is $1,500 deducted from your proceeds, you receive $28,500 but make payments on $30,000. This effectively raises your true APR above the stated rate. When comparing lenders, always calculate total cost including fees. Some lenders charge no origination fee. If a lender quotes a low rate but charges a high fee, a no-fee lender at a slightly higher rate may cost less overall.
Debt consolidation math: when a personal loan actually makes sense
Debt consolidation with a personal loan makes sense when two conditions are met: (1) your personal loan rate is meaningfully lower than your existing debt's average rate, and (2) you won't run up new credit card debt after consolidating. The math is straightforward: if you have $20,000 in credit card debt at 22% APR and can get a personal loan at 12% APR for 5 years, you'll pay roughly $6,450 less in total interest over the same five years, $6,693 instead of $13,143. The psychological benefit is also real, one fixed payment instead of multiple minimum payments. The risk: after consolidating, many people run up their credit cards again, ending up with both the personal loan payments and new card balances. Freeze the cards or close them to avoid this.
How to get the lowest personal loan rate: a step-by-step approach
Step 1: Check your credit report for errors at AnnualCreditReport.com, disputing an incorrect derogatory mark can raise your score. Step 2: Pay down credit card balances before applying, since lower utilization can help your score. Step 3: Pre-qualify with at least 3 lenders using soft pulls to compare rates without impacting your score. Step 4: Consider a shorter loan term, which may come with a lower rate. Step 5: If you're close to a credit score threshold, wait and take targeted actions to cross it before applying. A 5-point improvement in rate on a $25,000 loan saves roughly $3,700 to $4,100 over 5 years, depending on where the rate starts.
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Further Reading
How We Calculate Your Score
The Worth It Score is based on the ratio of total interest paid to the original loan amount. Paying a small fraction of your principal in interest (low rate, short term) scores near 90; paying more in interest than you borrowed scores near 20. Debt consolidation use with significant savings gets a bonus boost.
- · Interest-to-principal ratio: under 8% → 90; under 15% → 78; under 25% → 64; under 40% → 50; under 60% → 35; 60%+ → 20
- · Debt consolidation bonus: if using for debt consolidation and saving over $500, adds 10 points
A high score means this is a low-cost loan relative to what you are borrowing. A low score means you are paying substantial interest, consider whether a shorter term, a secured loan, or improving your credit score before applying would reduce the total cost.
How to Cite This Calculator
If you reference this calculator in an article, blog post, or research, use one of the formats below. The Worth It Score methodology is fully documented and independently verifiable.
APA
Baldwin, S. (2026). Is a Personal Loan Worth It for You? True Cost Calculator (2026). Worth It Calculators. https://worthitcalculators.com/personal-loan/
MLA
Baldwin, Sean. "Is a Personal Loan Worth It for You? True Cost Calculator (2026)." Worth It Calculators, October 14, 2026, https://worthitcalculators.com/personal-loan/.
Plain text / web
Source: Is a Personal Loan Worth It for You? True Cost Calculator (2026), Worth It Calculators (https://worthitcalculators.com/personal-loan/)
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