Personal loans can be a versatile and flexible way to borrow money. Typically, when you take out a personal loan, the lender just deposits the money in your checking account. You can do whatever you want with it once you have it.
Of course, you will have to pay back all you borrowed. So, before you move forward with taking out a personal loan, you'll need to consider the monthly costs you'll incur. If you are thinking about a $10,000 personal loan, here's what you can expect.
Here's the monthly payment if you borrow $10,000
There's not just one answer to the question of how much a monthly payment on a $10,000 personal loan will be because there are actually two factors that impact it:
- Your interest rate
- The repayment timeline
For example, the table below shows what your monthly payments would be at different interest rates with different repayment terms if you borrowed $10,000. It also shows total interest costs over time. This includes an 11.48% rate, which is the national average for personal loan rates as of July 10, 2023 according to the Federal Reserve.
| Interest Rate | 2-Year Repayment Timeline | 5-Year Repayment Timeline | 7-Year Repayment Timeline |
|---|
| 7.00% | $448 per month, $745.42 in total interest | $198 per month, $1,880.72 in total interest | $151 per month, $2,677.85 in total interest |
| 11.48% | $468 per month, $1,239.44 in total interest | $220 per month,$3,189.54 in total interest | $174 per month, $4,595.72 in total interest |
| 15.00% | $485 per month, $1,636.80 in total interest | $238 per month, $4,273.96 in total interest | $193 per month, $6,209.27 in total interest |
Data source: Author calculations using personal loan calculator.
As you can see, there's a huge difference in monthly payment costs and total costs based on your interest rate as well as the time it takes you to repay your loan.
And there's a tradeoff to be made. If you want lower monthly payments, you're going to have to accept higher costs over time. If you would prefer to be debt free sooner and pay less over time, you'll have to pay more each month.
Keeping your borrowing costs down is often the best approach
When it comes to taking out a personal loan, your goal should typically be to find a loan that provides the lowest total borrowing costs over time while still being affordable.
You don't want to make your payment so high that you risk defaulting. But you should choose the loan with the shortest payoff timeline that you can comfortably afford. This way you can become debt free faster. Plus keeping borrowing costs down means you send less money to the lender and keep more in your pocket. So, take a close look at your budget. If you can make a higher payment work without unsustainable sacrifice, choose the loan with the shorter payoff time.
Aside from picking a shorter loan term, you'll also want to do all you can to get a loan at the lowest possible interest rate. This can make a huge impact on your payments without any downsides. To get the best rate, you can:
- Shop around among different lenders. Get online quotes from banks, credit unions, and online lenders to see which offers you the most affordable loan. You'll need to input some basic information about how much you want to borrow and even your Social Security number, but many lenders will give you a quote without a hard credit check so you can compare your options. Try to get quotes from at least three lenders so you can get a good idea of what rates are available to you.
- Try to improve your credit before borrowing. Making extra monthly payments to reduce other debts can help you do that. You can free up the funds to do so by giving up a meal or two out for a few months or picking up a side gig for a few hours a week. Or you can try writing a goodwill letter to ask creditors to voluntarily remove negative information from your credit record.
- Consider a cosigner. If someone with better credit or more income will agree to share legal responsibility for your personal loan, you can often get a better rate.
If you take these steps, ideally your $10,000 personal loan will be affordable for you both monthly and over time.
FAQs
The monthly payment on a $10,000 loan ranges from $137 to $1,005, depending on the APR and how long the loan lasts. For example, if you take out a $10,000 loan for one year with an APR of 36%, your monthly payment will be $1,005.
How much is a $10,000 personal loan a month? ›
The monthly payment on a $10,000 loan ranges from $137 to $1,005, depending on the APR and how long the loan lasts. For example, if you take out a $10,000 loan for one year with an APR of 36%, your monthly payment will be $1,005.
What is the typical monthly payment on a 10k loan? ›
Representative example
| Loan amount £10,000 | Monthly repayments £193.02 | Length of agreement 60 months |
| Total amount repayable £11,581.20 | Representative 6.1% APR | Fixed Annual Rate of Interest (nominal) 5.9358% |
1 more rowRequirements will vary across lenders. However, qualifying for a $10,000 personal loan typically requires a credit score that exceeds 640, an active checking account, and a steady, verifiable income, among other factors.
What is the monthly payment on $9000 personal loan? ›
Personal Loan Calculator
| $5,000 | $9,000 |
|---|
| 24 mos. | $267 | $480 |
| 36 mos. | $199 | $358 |
| 48 mos. | $166 | $298 |
| 60 mos. | $147 | $264 |
The main factor in determining if you qualify for a $10,000 personal loan is your credit history. You'll need a credit score of at least 670 before you apply. Lenders look at your debt-to-income ratio when deciding approval. A DTI ratio of 36% or lower is ideal.
How much do banks usually give for personal loans? ›
Although loan amounts vary across lenders, the maximum amount for personal loans typically ranges from $500 to $100,000. In some cases, you may qualify for a loan larger than what you need. Before accepting any loan, consider what you can afford to repay and be sure you don't borrow more than what you can manage.
What would the monthly payment be on the $10,000 loan at 6% interest? ›
Here is an example, if you have a $10,000 personal loan with an interest rate of 6% and a repayment period of 24 months, and plug that into a loan calculator, you would get a monthly payment of $443.
What is 5% interest on a $10,000 loan? ›
Simple Interest Examples
You want to know your total interest payment for the entire loan. To start, you'd multiply your principal by your annual interest rate, or $10,000 × 0.05 = $500.
What is the minimum income for a 100000 loan? ›
To recap: For a $100,000 mortgage, you need to make a minimum of $29,138 per year. To get this number, we calculated the percentage of income based on the 28/36 rule of thumb, which states that mortgage payments should be 28% or less of your gross income and no more than 36% of your total monthly debts.
Each partner lender has its own credit score requirements. However, Upstart may still work with you if you don't have enough credit history to generate a score. In addition, you must have a minimum of $12,000 in verifiable annual income and meet other basic criteria.
What is a hardship loan? ›
Hardship personal loans are a type of personal loan intended to help borrowers overcome financial difficulties such as job loss, medical emergencies, or home repairs. Hardship personal loan programs are often offered by small banks and credit unions.
Do personal loans look bad on credit? ›
A personal loan can affect your credit score in several ways—both good and bad. Taking out a personal loan isn't bad for your credit score in and of itself. However, it may affect your overall score for the short term and make it more difficult for you to obtain additional credit before that new loan is paid back.
What's the average payment on a $10000 personal loan? ›
Here's how much you'd pay each month for a $10,000 personal loan
| 8.00% |
|---|
| Two-Year Repayment | $452.27/month, $854.55 in interest over time |
| Five-Year Repayment | $202.76/month, $2,165.84 in interest over time |
| Seven-Year Repayment | $155.86/month, $3,092.42 in interest over time |
Jan 17, 2024
Example Monthly Payments on a $7,000 Personal Loan
| Payoff period | APR | Monthly payment |
|---|
| 12 months | 15% | $632 |
| 24 months | 15% | $339 |
| 36 months | 15% | $243 |
| 48 months | 15% | $195 |
3 more rowsAug 31, 2021
The monthly payment on an $8,000 loan ranges from $109 to $804, depending on the APR and how long the loan lasts. For example, if you take out an $8,000 loan for one year with an APR of 36%, your monthly payment will be $804.
How much is a $20,000 loan for 5 years? ›
A $20,000 loan at 5% for 60 months (5 years) will cost you a total of $22,645.48, whereas the same loan at 3% will cost you $21,562.43. That's a savings of $1,083.05. That same wise shopper will look not only at the interest rate but also the length of the loan.
How much is the monthly payment for a $80 000 personal loan? ›
Cost to repay an $80k loan
| Loan term | APR | Monthly payment |
|---|
| 2 years | 8% | $3,618 |
| 3 years | 9% | $2,544 |
| 4 years | 10% | $2,029 |
| 5 years | 11% | $1,739 |
2 more rows