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:
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- 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.
Our picks for the best personal loans
Our team of independent experts pored over the fine print to find the select personal loans that offer competitive rates and low fees. Get started by reviewing our picks for the best personal loans.
FAQs
To increase your chance of qualifying for a $10,000 unsecured loan, you should have a credit score of 600 or higher. Some lenders start their minimum credit score requirements at 600, however, there are some lenders that require a credit score in the high 600s or low 700s.
How much would a $10,000 personal loan cost per month? ›
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
The annual percentage rate (APR)
| Loan term | APR% | Total payable |
|---|
| 5 years | 3.4% | £10,860 |
| 12 months | 5.9% | £10,320 |
| 3 years | 5.9% | £10,944 |
| 5 years | 5.9% | £11,580 |
5 more rowsTo increase your chance of qualifying for a $10,000 unsecured loan, you should have a credit score of 600 or higher. Some lenders start their minimum credit score requirements at 600, however, there are some lenders that require a credit score in the high 600s or low 700s.
How hard is it to get a $10 K personal loan? ›
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.
What is the most common personal loan amount? ›
In general, personal loan amounts range from $1,000 up to $50,000, though some lenders may offer loans up to $200,000. The average personal loan amount was about $11,500 as of Q2 2023, according to data from TransUnion. Below, we look at how average personal loan balances vary by generation and state.
Is $10000 considered a small loan? ›
Different lenders, institutions, and financial planners have different definitions of what defines a small loan. Some consider small loans to be anything under $5,000, while others use a $10,000 cutoff. For the purposes of this discussion, we'll say that a small personal loan is any loan in the $1,000 to $10,000 range.
How much would a $15,000 loan cost per month? ›
Example Monthly Payments on a $15,000 Personal Loan
| Payoff period | APR | Monthly payment |
|---|
| 12 months | 15% | $1,354 |
| 24 months | 15% | $727 |
| 36 months | 15% | $520 |
| 48 months | 15% | $417 |
3 more rowsAug 31, 2021
Monthly payments for a $100,000 mortgage
| Annual Percentage Rate (APR) | Monthly payment (15-year) | Monthly payment (30-year) |
|---|
| 6.75% | $884.91 | $648.60 |
| 7.00% | $898.83 | $665.30 |
| 7.25% | $912.86 | $682.18 |
| 7.50% | $927.01 | $699.21 |
5 more rowsThe 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.
Easiest-to-get personal loans compared 2024
| Title | APR | Min. credit score |
|---|
| Avant | 9.95% to 35.99% | 580 |
| LendingClub | 9.57% to 35.99% | 600 |
| OneMain | 18% to 35.99% | Undisclosed |
| LendingPoint | 7.99% to 35.99% | 600 |
6 more rowsMar 28, 2024
Secured personal loans: Usually, you don't need collateral for a personal loan. But some lenders will allow you to put up an asset as collateral if you have poor credit and otherwise wouldn't qualify for the loan (or qualify with terms you'd find unacceptable).
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.
What is the easiest loan to get approved for? ›
The easiest types of loans to get approved for don't require a credit check and include payday loans, car title loans and pawnshop loans — but they're also highly predatory due to outrageously high interest rates and fees.
What is the easiest bank to get a loan from? ›
The easiest banks to get a personal loan from are USAA and Wells Fargo. USAA does not disclose a minimum credit score requirement, but their website indicates they consider people with scores below 640, so even people with bad credit may be able to qualify.
How long does it take to get approved for a 10k loan? ›
Fast-funding options including same-day and next-day loans are common for 10,000 dollar loans. As long as you are prepared with some basic documentation that verifies your identity, address, and income, rapid approval and funding may be available.
What is the monthly payment on a $15,000 personal loan? ›
The monthly payment on a $15,000 loan ranges from $205 to $1,504, depending on the APR and how long the loan lasts. For example, if you take out a $15,000 loan for one year with an APR of 36%, your monthly payment will be $1,504.
How much would a $8000 loan cost per month? ›
Example Monthly Payments on an $8,000 Personal Loan
| Payoff period | APR | Monthly payment |
|---|
| 12 months | 15% | $722 |
| 24 months | 15% | $388 |
| 36 months | 15% | $277 |
| 48 months | 15% | $223 |
3 more rowsAug 31, 2021
You'll have the best chance of getting approved with an excellent credit score, such as one above 800. You may struggle to find a lender that will approve a $50,000 loan for folks with poor or bad credit. A "poor" credit score is considered 580 or under. Most lenders require at least a "fair" score of around 670.
How much is a monthly payment on a $100,000 loan? ›
Assuming principal and interest only, the monthly payment on a $100,000 loan with an APR of 6% would be $843.86 on a 30-year term and $599.55 on a 15-year one.
