How this number is made
A personal loan is usually unsecured, so the rate is the price of not pledging a car or a house. The payment math is still the standard installment formula.
- Amount financed is after the down payment and before a fee you pay in cash.
- The rate is the rate in the note. A promotional rate that expires is not this page.
Formula
Payment = P × r(1+r)^n ÷ ((1+r)^n − 1), with r = APR ÷ 12.
Worked example
With the figures already in the form, monthly payment is $332.14.
Questions
Why is this its own page?
Unsecured personal loans often have shorter terms and higher rates than a car or a house. The formula is the same installment payment.
Are fees included?
Only if you added them to the amount financed. A fee paid in cash is a cost, but it does not change this payment.