Calculating Interest on a Personal Loan

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is Interest on a Personal Loan?
Types of Interest on a Personal Loan
Simple Interest on Personal Loans
Amortizing Interest on Personal Loans
How Is Personal Loan Interest Calculated?
Simple Interest Formula
Amortized Interest Formula
Why It's Important to Know How Personal Interest is Calculated
The Takeaway
Frequently Asked Questions
Photo credit: iStock/Phiromya Intawongpan
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About the Author
Jason Steele has been writing about credit cards and award travel since 2008. One of the nation's leading experts in this field, he has contributed to dozens of personal finance and travel outlets and has been widely quoted in the mainstream media.
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