What does a personal loan cost?
Quick answer
Interest and fees can make a loan cost more than the cash you get. To find the cost to borrow, subtract the cash you receive from all the money you pay. Count the payments and any fee you pay on its own. Do not count the same fee twice. A longer loan can lower the monthly bill while raising the full cost.
Start with cash received and total paid
The loan amount may differ from the cash you get. If a lender takes a fee before sending the money, you get less cash but still owe the full loan amount.
Add all the loan payments and any fee you pay separately. Then subtract the cash you received. The difference is your cost to borrow.
Rung calculation, not a loan offer. Figures use fixed rates and monthly payments. Totals use unrounded payments; the last payment may vary by cents. Late fees and optional extras are left out. See the model and limits.
Our fee research shows why the loan amount and cash received differ. Work out cash after a fee or read the fee finding and its limits.
A fee can reduce the cash you get
A $500 fee comes out before the money reaches you. You get $9,500, but still owe the full loan amount plus interest.
$9,500.00
$11,957.15
The monthly payment is about $332.14. The cost to borrow includes $1,957.15 in interest and the $500 fee. That fee is counted once because you get less cash.
Totals use unrounded payments. A lender may adjust the last payment by a few cents.
What changes if you take 60 months?
Keep the same $10,000 loan, 12% fixed rate, and 5% fee taken out. Both loans send you $9,500. Only the time to repay changes.
| What to compare | 36 months | 60 months |
|---|---|---|
| Monthly payment | $332.14 | $222.44 |
| Total paid | $11,957.15 | $13,346.67 |
| Cost to borrow | $2,457.15 | $3,846.67 |
The longer loan lowers the monthly bill by $109.70, but adds $1,389.52 in interest. Choose the shorter loan only if its payment leaves room for your other bills.
Rung calculation, not a loan offer. Figures use fixed rates and monthly payments. Totals use unrounded payments; the last payment may vary by cents. Late fees and optional extras are left out. See the model and limits.
What if you pay the fee another way?
If you pay a fee separately at the start, include that fee in the total you pay. If the fee is added to what you owe, it may also add interest. Check how your lender charges the fee.
APR is the yearly borrowing cost shown as a percent. It includes interest and certain fees. It differs from the interest rate used to work out the monthly payment. Compare APR with APR, and use the fixed interest rate in the calculator.
Source: CFPB guidance on loan fees.
Source: Regulation Z: the APR method.
Compare payments you can afford
First, set aside enough for rent, food, and other bills. Compare loan lengths with payments that fit what is left. Fewer months may save interest, but a payment you cannot keep up with can add fees and harm your credit.
The example leaves out late fees and optional extras such as insurance. Read the offer for those costs too. Choose only when both the monthly payment and the total price work for you.
Check your own loan cost
Enter your offer to see the cash you get, the monthly payment, and the total you repay.
Sources and method
Sources checked August 28, 2026. See our editorial policy for how we check the work.
Read the sources and limits
- CFPB: Personal installment-loan fees. Common required and optional charges and the need to compare disclosures.
- CFPB Regulation Z Appendix J. The official actuarial framework for closed-end APR computations.
- Rung personal-loan cost method. Fixed-payment and fee method personal-loan@2026-08-28.1.
Worked examples use fixed rates and payments. They leave out late fees and optional extras. They do not predict approval or a credit score.