What high-rate borrowing actually costs.

Bad credit loans (sometimes called subprime loans) carry interest rates of 25-50% and often include origination fees of 3-10%. For a 5,000 loan at 35% APR over 24 months with a 5% origination fee, monthly payments are around 294 and total cost is 7,066 - over 2,000 in interest and fees on a 5,000 loan.

This calculator shows the full cost: monthly payment, total interest, total paid, and effective APR including fees. The effective APR is often higher than the quoted rate because origination fees add to the principal and compound over the loan term.

For most borrowers with credit challenges, alternatives are cheaper: credit union personal loans (18-28% APR typical), secured borrowing against an asset, or debt management plans. Bad credit loans make sense only when no alternative exists and the loan solves a genuine financial problem rather than deferring it.

Quick example

With loan amount of 5,000 and interest rate of 35% (plus loan term of 24 and origination fee of 250), the result is 307.22. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Loan Amount (Received), Interest Rate (APR), Loan Term, and Origination Fee. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

What's happening under the hood

Standard amortisation with principal = loan + origination fee. Monthly payment = P × r / (1 - (1 + r)^-n). Effective APR = (total interest + fees) / loan amount / years. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Why payoff plans work

Debt feels overwhelming when it's an abstract total. Break it into a payoff date and a monthly figure and the problem becomes finite — you can see the finish line. That visibility is what this tool provides, and for many people it's the difference between dithering and acting.

What this doesn't capture

Real payoff journeys include missed payments, fee changes, balance transfers, and promotional rates that reset. The calculation assumes a steady plan; reality is rarely that clean. Use the figure as the best-case plan against which actual progress gets measured.