Worked example: $10,000 on a loan or a card
To receive $10,000 from a 12% loan over five years with a 5% origination fee taken from the proceeds, you borrow $10,526.32. The payment is $234.15 a month and the loan costs $4,049.12 in interest and fees. On a 21% card paid $250 a month, the same $10,000 takes 70 months and costs $7,350.19 in interest. The loan costs $3,301.07 less.
The card would only match the loan if you paid about $346.41 a month.
The effect of the origination fee
With no fee, the same loan has a payment of $222.44 and costs $3,346.67 in interest, so the loan saves $4,003.52 against the card. At a 20% fee you borrow $12,500.00 to receive $10,000, the payment rises to $278.06 and the loan's cost of $6,683.34 leaves a saving of only $666.86. Credit Karma and NerdWallet both give personal loan origination fees as ranging from 0% to roughly 8% to 10%.
Fixed payment, same payment or minimum only
A card paid the same as the loan's $222.44 and $0 fee takes 90 months and costs $9,811.63 in interest. Paying only the minimum is far dearer: with a minimum of the month's interest plus 1% of the balance, never less than $25, the card takes 297 months and costs $16,457.72 in interest. Card issuers set their own minimums, so the share and the lowest amount are editable; $25 is an example, not a rule.
How the rates are used
US rates are nominal annual rates: the periodic rate times the number of periods in a year (Regulation Z Appendix J). The calculator divides each rate by 12 for the monthly rate. An origination fee is deducted from the loan, so the amount you borrow is the amount you need divided by one minus the fee percentage.
A personal loan has a fixed rate and term; a card's rate is usually variable, so the card figures assume today's APR stays the same.
To see how long a card takes to clear, use the credit card repayment calculator.
To compare a loan with a balance transfer card, use the balance transfer vs personal loan calculator.
Use the right country page
This page uses US terms, dollars and the nominal rate convention. For a UK loan, with pounds and the effective APR convention, choose United Kingdom above the form to open the UK credit card vs personal loan calculator. Inputs reset and amounts are not converted.
Inputs for the US credit card vs personal loan calculator
Amount to pay off
How much you need to receive, or owe, which either the loan or the card would cover.
Personal loan interest rate, term and origination fee
The note rate and term on the offer, and the fee taken out of the loan before you get it.
Credit card APR
The yearly rate on the card you would use.
How you would pay the card
A fixed amount each month, the same payment as the loan, or only the minimum.
Fixed card payment
Used when you pay a fixed amount. It must be more than the card's monthly interest.
Minimum payment settings
The share of the balance added to each month's interest, and the lowest amount the card asks for.
CALCULATOR QUESTIONS
US credit card vs personal loan calculator questions
Is a personal loan cheaper than a credit card?
Often, when the loan's rate is lower and you would take years to clear the card. On $10,000, a 12% loan over five years with a 5% fee costs $4,049.12 against $7,350.19 in interest for a 21% card paid $250 a month.
How does an origination fee change the comparison?
It raises the amount you borrow and the payment. In the example a 5% fee turns a $222.44 payment into $234.15.
How much do I need to pay the card to match the loan?
In the example, about $346.41 a month. Above that the card is cheaper.
What if I only pay the minimum?
The card takes far longer and costs far more. With a minimum of interest plus 1% of the balance, never under $25, the example card takes 297 months.
Which should I choose if I have several cards?
The calculator compares one amount. To see the effect of paying several debts with one loan, use the debt consolidation loan calculators.