Understanding the personal loan calculator
Personal loans are unsecured, fixed-rate installment loans used for consolidation, big purchases, or emergencies. Because there's no collateral, rates depend heavily on credit and sit above secured options like home equity loans. Many lenders also deduct an origination fee from the disbursement so a $15,000 loan with a 3% fee puts $14,550 in your account while you repay the full $15,000 plus interest.
That fee is why the APR, which folds it in, exceeds the stated rate and is the number to compare across offers. Personal loans shine for consolidating high-rate credit-card debt into a lower fixed rate with a definite payoff date. Watch for prepayment penalties (most reputable lenders have none) and make sure the fixed payment fits your budget for the full term.
Results are estimates for education only and are not financial advice.