Personal Loan Calculator
Calculate the monthly payment, real APR and total cost of your personal loan, including fees and optional insurance.
Results
Monthly payment
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Estimated APR
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Total cost of credit
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Total amount payable
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The payment is calculated using the French amortization system over the nominal rate. The APR additionally incorporates the arrangement fee and other costs, reflecting the real effective cost of the loan.
With fees and insurance / Without fees or insurance
With fees and insurance
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Without fees or insurance
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Outstanding balance per year
Interest vs. Principal paid per year
Payment breakdown (first 60 months)
Amortization schedule
| Period | Payment | Interest | Principal | Remaining |
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When should you use this calculator?
A personal loan is an unsecured financing product, commonly used for expenses such as buying a vehicle, home renovations or unexpected costs. Its cost depends on the nominal interest rate (TIN), the term and any fees applied.
How it is calculated
The monthly payment is calculated using the French amortization system applied to the nominal rate (TIN), just like a mortgage: payment = C · [ i (1+i)^n ] / [ (1+i)^n ∑’ 1 ], where C is the borrowed capital, i the monthly interest rate and n the number of payments. The APR, on the other hand, isn't calculated with a closed formula: it's found by successive approximation, looking for the monthly rate that equates the present value of all future payments to the amount actually disbursed (the capital minus the arrangement fee), and that monthly rate is then converted into an equivalent annual rate. That's why the APR always incorporates the effect of the arrangement fee, while the monthly payment only depends on the TIN.
Practical example
A numeric example: a €10,000 loan over 5 years (60 payments) with an 8% TIN and a 2% arrangement fee (€200) gives a monthly payment of €202.76. Total interest paid over the loan is €2,165.84, and adding the arrangement fee, the total cost comes to €2,365.84, so the total amount repaid is €12,365.84. The resulting APR is 9.23%, noticeably higher than the 8% TIN: without the arrangement fee, the APR on the same loan would be 8.30%, already slightly above the TIN purely from monthly compounding.
Nominal rate (TIN) vs. APR (TAE): why they differ
The nominal interest rate (TIN) is the percentage applied to the capital to calculate the payment, but it doesn't reflect the real cost of the loan. The APR (TAE in Spanish) does, because it also incorporates the arrangement fee and other associated costs, such as payment protection insurance if taken out. By law, all lenders must display the APR in their advertising and contracts, precisely so two loans with the same TIN but different fees can be compared fairly: as the example above shows, the gap between TIN and APR can exceed a full percentage point when the arrangement fee is high.
Common mistakes
A common mistake is comparing loans by looking only at the TIN or the monthly payment, without checking the APR, which hides the real effect of the arrangement fee and other costs. Another frequent mistake is taking out payment protection insurance without weighing whether it's really worth it: it covers instalments in case of unemployment or incapacity, but it increases the monthly cost, and its usefulness depends on each person's employment situation. It's also worth keeping in mind that an active personal loan lowers your debt ratio, which can make it harder to get approved for a mortgage requested shortly after, or worsen its terms.
Legal and tax context
Consumer credit law allows full or partial early repayment of the loan at any time. The maximum fee the lender can charge is 1% of the repaid capital if more than a year remains until maturity, or 0.5% if less than a year remains. The arrangement fee, when it exists, is normally charged as a percentage of the borrowed capital at signing and increases the effective cost of the loan without affecting the monthly payment, since the payment is calculated on the full amount borrowed, not on the net amount received after deducting the fee.
Practical tips
Online banks usually respond to a personal loan application within 24-48 hours and disburse funds within a few days; traditional lenders can take between 3 and 10 business days depending on the documentation required and the applicant's profile. If you're planning to apply for a mortgage in the coming months, it's worth avoiding opening new personal loans right before, since the bank will calculate your total debt ratio (debts versus income) and an active personal loan reduces the margin available for the mortgage payment.
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Frequently asked questions
What is the difference between TIN and APR?
The TIN is the nominal interest rate applied to the capital. The APR also includes fees and costs, showing the real annual cost of the loan.
Is the arrangement fee mandatory?
No, it depends on the lender. Some loans have no arrangement fee, reducing their total cost.
Is payment protection insurance worth it?
It depends on your employment situation and risk tolerance: it covers instalments in case of unemployment or incapacity, but increases the monthly cost of the loan.
Does taking out a personal loan affect getting a mortgage later?
Yes. When you apply for a mortgage, the bank calculates your total debt-to-income ratio. Active personal loans reduce your borrowing capacity and can make approval harder or worsen the terms you're offered.
Can I pay off a personal loan early?
Yes. The Consumer Credit Act allows full or partial early repayment at any time. The maximum fee is 1% of the amount repaid if more than a year remains, or 0.5% if less than a year remains.
How long does it take to get a personal loan approved?
Online banks usually respond within 24-48 hours and pay out within a few days. Traditional lenders can take 3 to 10 business days, depending on the paperwork required and the applicant's profile.
Why is the APR higher than the TIN in the example with an arrangement fee?
Because the APR spreads the cost of the arrangement fee (€200 on a €10,000 loan) across the payments, raising the effective annual cost. Without an arrangement fee, the gap between TIN and APR is much smaller, coming only from monthly compounding.
What happens if I miss a loan payment?
Missing a payment triggers late-payment interest (usually the agreed TIN plus a surcharge, capped by law at two and a half times the legal interest rate) and can lead to being listed in default registries and to a court claim for the outstanding debt if the situation continues.
Is a personal loan or a credit card better for financing a purchase?
A personal loan usually has a much lower TIN than a revolving credit card and a fixed, predictable payment, so it's normally the cheaper option for medium or large amounts over a defined term; a credit card may make sense only for small amounts paid off within a month or two.
Does the loan term affect the APR?
The APR changes little with the term if fees stay the same, but a longer term lowers the monthly payment and increases the total interest paid, just like with a mortgage.