If you need to borrow $10,000 for a big purchase or to accomplish an important financial goal, a personal loan can be one way to get the money you need. Personal loans usually have more affordable interest rates than credit cards and it may be easier to borrow $10,000 using a personal loan rather than a card, since your credit limit may not be that high.
Before you move forward with a $10,000 loan, though, you need to make sure you understand how much it will cost you.
Here's how much you'd pay each month for a $10,000 personal loan
The amount you will end up paying for a $10,000 personal loan is determined by your interest rate and the loan repayment timeline you choose when you borrow. The table below shows how much your loan might cost you at different rates (including the national average personal loan rate of 12.35%).
| 8.00% | 10.00% | 12.35% | 15.00% |
|---|
| Two-Year Repayment | $452.27/month,$854.55 in interest over time | $461.45/month,$1,074.78 in interest over time | $472.37/month,$1,336.90 in interest over time | $484.87/month,$1,636.80 in interest over time |
|---|
| Five-Year Repayment | $202.76/month,$2,165.84 in interest over time | $212.47/month,$2,748.23 in interest over time | $224.22/month,$3,453.03 in interest over time | $237.90/month,$4,273.96 in interest over time |
|---|
| Seven-Year Repayment | $155.86/month,$3,092.42 in interest over time | $166.01/month,$3,944.99 in interest over time | $178.40/month,$4,985.98 in interest over time | $192.97/month,$6,209.27 in interest over time |
|---|
Data source: Author's calculations.
The longer the loan term, the higher the total interest costs -- but the lower the individual payments are. While it may be tempting to choose a loan with a long payoff period so it seems more affordable each month, this only increases the amount you're paying for your purchases over time.
How to make sure your loan is affordable for you
To make sure you are getting an affordable loan, take a look at both total costs and monthly payments. If the monthly payments don't fit into your budget, you shouldn't borrow. And if you aren't comfortable with the total costs -- after seeing interest tacked on -- you should also avoid borrowing.
Be sure to shop around carefully to get the best rate possible. The difference between a loan at 15% and a loan at 8% is huge, but even just jumping from 8% to 10% can add up -- especially if you're choosing a loan with a longer repayment timeline. Since your rate can vary from one personal loan lender to the next, you should try to get at least three or four different quotes before deciding which financial institution to borrow from.
Of course, you also want to make sure you're borrowing for a good reason that will improve your life in the long run, rather than for something that will be gone and forgotten before you have even finished paying for it!
FAQs
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 is a $10,000 personal loan a month? ›
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| Loan Amount | Loan Term (Years) | Estimated Fixed Monthly Payment* |
|---|
| $10,000 | 3 | $311.02 |
| $10,000 | 5 | $207.54 |
| $15,000 | 3 | $466.52 |
| $15,000 | 5 | $311.67 |
13 more rowsRepresentative 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 rowThe 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.
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 |
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.
How big of a loan can I get with a 700 credit score? ›
You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
How long does it take to get a $10000 loan? ›
You may be able to get your money the same day your application gets approved. You can prequalify for a loan online in a minute. Cons If you apply with a co-signer, your application can take up to two weeks to process. Your co-applicant (if applicable) must reside at the same address as you.
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.
The monthly payment on a $20,000 loan ranges from $273 to $2,009, depending on the APR and how long the loan lasts. For example, if you take out a $20,000 loan for one year with an APR of 36%, your monthly payment will be $2,009.
How much would a $7000 loan cost per month? ›
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
Yes, you can pay off a personal loan early, but it may not be a good idea.
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 would a $8000 loan cost per month? ›
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.
Is $10000 considered a small loan? ›
Key takeaways: Small loans can be beneficial for covering an unexpected expense, financing a purchase, or consolidating credit card debt. And small loans generally range from $1,000 to $10,000 and can generally be obtained with lower interest rates than credit cards.
