Loan Payoff Calculator
See exactly how much your loan will cost — month by month. Average personal loan rates differ significantly between countries: UK borrowers typically pay 2–3% less than US borrowers with comparable credit scores.
Average US personal loan rate (2024): ~11.5% APR
Personal Loan Rate Comparison by Country
| Country | Good Credit APR | Fair Credit APR | Max Term |
|---|---|---|---|
| 🇺🇸 United States | 7–13% | 14–25% | 7 years |
| 🇬🇧 United Kingdom | 5–10% | 11–20% | 7 years |
| 🇨🇦 Canada | 7–12% | 13–22% | 5 years |
| 🇦🇺 Australia | 6–11% | 12–20% | 7 years |
| 🇩🇪 Germany | 4–8% | 9–15% | 7 years |
The Real Cost of a $15,000 Loan at Different Rates
| Rate | Monthly Payment | Total Interest (5yr) | Typical Country |
|---|---|---|---|
| 5% APR | $283 | $992 | Germany / low-rate UK |
| 8% APR | $304 | $2,239 | UK average |
| 11.5% APR | $330 | $4,798 | US average |
| 15% APR | $357 | $6,420 | US fair credit |
| 25% APR | $445 | $11,703 | US poor credit |
Understanding Loan Amortization
With a fixed-rate amortizing loan, each payment is the same amount, but the mix of principal and interest changes over time:
- Early payments: Mostly interest, little principal. The lender gets paid first.
- Later payments: Mostly principal, little interest. Your equity grows faster.
- Implication: Extra payments made early in the loan term save significantly more interest than the same payments made later.
Frequently Asked Questions
What's the difference between APR and interest rate on a loan?
The interest rate is the cost of borrowing the principal. The APR (Annual Percentage Rate) includes the interest rate plus any fees charged by the lender (origination fees, closing costs, etc.). Always compare APRs, not just interest rates, when shopping for loans. US law (Truth in Lending Act) requires lenders to disclose APR. The UK uses APR under the Consumer Credit Act. APR is the standard comparison metric in both countries.
Can I pay off a loan early without penalty?
In the US, most personal loans don't have prepayment penalties, but some do — check your loan agreement. In the UK, personal loans regulated under the Consumer Credit Act can charge early repayment fees, capped at 1–2 months of interest. In Canada, federally regulated lenders cannot charge prepayment penalties on most consumer loans. German law generally prohibits prepayment fees on consumer loans under €75,000.
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