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!
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
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 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
Representative 6.1% APR, based on a loan amount of £10,000, over 5 years, at a Fixed Annual Interest Rate of 5.9358%, (nominal). This would give you a monthly repayment of £193.02 and a total amount repayable of £11,581.20.
What credit score do I need for a $10,000 loan? ›
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 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? ›
Nearly 23 million Americans have unsecured personal loans, with an average balance of about $11,500. Today, the average interest rate on a personal loan is 11.48%, up from 9.38% in 2021. The average personal loan balance is highest among baby boomers ($21,644) and lowest among Generation Z ($7,684).
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 income for a $10,000 loan? ›
You need to have a 660 credit score or higher to qualify for a Discover personal loan. You must also be a U.S. citizen or permanent resident and earn at least a $25,000 annual income.
Who is the easiest to get a personal loan from? ›
Easiest-to-get personal loans compared 2024
| Title | APR | Min. credit score |
|---|
| BadCreditLoans.com | 5.99% to 35.99% | Undisclosed |
| Upstart | 5.2% to 35.99% | 300 |
| Avant | 9.95% to 35.99% | 580 |
| LendingClub | 8.98% to 35.99% | 600 |
6 more rowsMay 7, 2024
You won't have to face any hassle in getting a personal loan of ₹10,000 with KreditBee. The entire process, from loan approval to verification, is simple and does not take longer than 10 minutes. When your loan is approved, the funds will be immediately deposited directly into your bank account.
Average online personal loan rates
| Borrower credit rating | Score range | Estimated APR |
|---|
| Excellent | 720-850. | 12.37%. |
| Good | 690-719. | 14.87%. |
| Fair | 630-689. | 18.40%. |
| Bad | 300-629. | 21.93%. |
May 14, 2024
Summary: Best Personal Loans From Banks
| Company | Forbes Advisor Rating | Current APR range |
|---|
| TD Bank | 3.5 | 8.99% to 23.99% |
| Discover | 3.5 | 7.99% to 24.99% |
| Wells Fargo | 3.5 | 7.49% to 23.24% |
| PNC Bank | 3.0 | Rates may vary by ZIP code |
2 more rowsMay 1, 2024
What is the monthly payment on a $5,000 personal loan?
| Payoff period | APR | Monthly payment |
|---|
| 1 year | 15% | $451 |
| 2 years | 15% | $242 |
| 3 years | 15% | $173 |
| 4 years | 15% | $139 |
3 more rowsThe 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.
What is the average monthly payment on a $5000 personal loan? ›
What is the monthly payment on a $5,000 personal loan?
| Payoff period | APR | Monthly payment |
|---|
| 1 year | 15% | $451 |
| 2 years | 15% | $242 |
| 3 years | 15% | $173 |
| 4 years | 15% | $139 |
3 more rowsThe specific credit score you need to qualify for a $1,000 loan can vary quite a bit among lenders. Most lenders look for good to excellent credit scores (670 or higher), but there are some that are willing to work with people who have less-than-perfect credit.
How hard is it to get a $5,000 personal loan? ›
You will almost certainly have no problems qualifying for a $5,000 personal loan if you have a strong income and good credit. However, you may struggle to get approved if your income is inconsistent, you have a low credit score, or you have a considerable amount of debt already.
