Compare two schedules for the same cash need
Enter your own terms or explore the illustrative defaults. These scenarios are not available offers.
Model: principal = cash needed ÷ (1 − deducted fee percentage). The fee is withheld from principal; fixed monthly payments repay that principal with interest. Enter the annual interest rate, not APR. Equal monthly periods, no extra charges, no early repayment. Actual lenders may restrict principal amounts or round differently.
Worked example and calculation
At 0% interest and no fee, $1,000 over 12 months is about $83.33 per month and $1,000 in total. A 5% deducted fee requires about $1,052.63 principal to leave $1,000 cash. For interest-bearing payments: P × r ÷ [1 − (1 + r)^−n], where r is the annual percentage rate of interest ÷ 1,200 and n is monthly payments. Totals use unrounded modeled payments.
Enter the loan amount, a fixed annual interest rate and the number of monthly payments. The calculation shows the estimated payment, total payments and interest. A separate fee calculation shows how a deduction can change the cash received.
Your numbers are assumptions. The tool does not supply a lender’s rate, check credit or calculate approval odds.
Inputs that change the result
Loan amount: the principal used in the repayment model. The planning ceiling is $35,000; actual product limits are separate.
Annual interest rate: the fixed nominal rate used for interest. Do not substitute a fee-inclusive APR when you need the exact contract schedule. 1
Number of payments: equal monthly periods, expressed as a whole number.
Optional withheld fee: a separate percentage or dollar amount deducted from funding. It reduces cash proceeds in this model; it does not silently change the amortized principal.
Calculate payment
A worked monthly example
For $5,000 at an assumed 18% fixed annual interest rate over 24 equal monthly periods, with no fees:
| Output | Result |
|---|---|
| Estimated monthly payment | $249.62 |
| Total payments | $5,990.89 |
| Total interest | $990.89 |
The total is calculated from the unrounded payment. Multiplying the displayed $249.62 by 24 produces a slightly different figure because the display is rounded. A real schedule may adjust the final payment.
How the formula works
Let P be principal, r the annual interest rate as a decimal divided by 12, and n the number of monthly payments.
Payment = P × r ÷ [1 − (1 + r)^(−n)].
When the interest rate is zero, Payment = P ÷ n. The zero-rate calculation is handled separately so the formula does not divide by zero.
Total payments = unrounded payment × n.
Total interest = total payments − P.
These formulas describe the stated simplified monthly model. Daily accrual, an irregular first period, variable rates, additional borrowing or a different payment frequency require a different schedule.
Calculate cash after a deducted fee
With principal P and deducted percentage f, cash proceeds = P × (1 − f).
A hypothetical $1,000 principal with a 5% fee leaves $950. If the expense itself is $1,000, the $50 shortfall remains even though the agreement says “$1,000.” 2
To investigate a target net amount N, the mathematical principal is N ÷ (1 − f). Lenders can have amount increments and rounding rules, so this is not a guaranteed request amount. A fee paid separately or added to the financed balance needs its own treatment.
Compare a shorter and longer schedule
For the same $5,000 at the assumed 18% fixed rate with no fees:
| Term | Payment | Total interest |
|---|---|---|
| 24 months | $249.62 | $990.89 |
| 36 months | $180.76 | $1,507.43 |
| 48 months | $146.87 | $2,050.00 |
The term comparison keeps principal and rate constant so the effect of time is visible. Real offers may change rate or fees when the term changes; those offers require a separate comparison.
What the calculator does not include
The basic monthly model does not calculate a legal APR for a fee-bearing agreement, taxes, optional services, late or returned-payment charges, payment holidays, variable interest or a creditor-specific payoff quote. A figure can be mathematically correct for this model and still differ from your agreement.
For a payday-style single repayment, use the short-term cost page instead of spreading the amount over invented monthly payments. For biweekly budgeting, use the installment schedule explanation.
Correct an invalid entry before using the result
A blank interest-rate field is not zero. A missing term is not one month. A negative amount, non-finite value, fee above 100%, or zero payments cannot produce a usable result in this model.
If an entry changes, calculate again before relying on a displayed result. Keep the assumptions beside any saved or printed estimate so the number can be reproduced.
Calculator questions
Is the result my loan offer? No. It is a calculation from entered assumptions.
Why does my lender show a different payment? Its rate, fee treatment, calendar, rounding or accrual method may differ. Compare the inputs and agreement rather than assuming either schedule uses identical rules.
Can I enter 0%? Yes. The model divides the principal by the number of payments. That does not claim a 0% offer is available.
Does the fee calculation change the monthly payment? Not when the fee is modeled as withheld from the existing principal. Financing a fee changes the model and must be stated separately.
Can I use this for early payoff? Not as a payoff quote. Request the actual amount and valid-through date from the creditor or servicer.
Personal-loan decisions · $5,000 example · Rates and fees
Further checks for this decision
Installment credit divides repayment into scheduled payments; the actual agreement determines the rate, term, amount and consequences of missed payments.3
A promise of guaranteed credit in exchange for an upfront payment is a warning sign. Verify the provider and distinguish a disclosed loan charge from a payment demanded to guarantee approval.4