If you need to borrow a large amount of money, you may be considering a personal loan. Some personal loan lenders allow you to borrow as much as $50,000, or even $100,000 so you can finance very large purchases that it generally wouldn't make sense to put on a credit card.
Before you move forward with taking out a large personal loan, though, you'll want to get a clear idea of what it will cost you. Specifically, you should look at both monthly payment and total repayment costs.
Here's what a $50,000 loan would cost you each month
The costs of a $50,000 loan are shown in the table below. Both your monthly payment and total interest costs change depending on how long you take to repay your loan and what interest rate you are offered, since rates do vary from one lender to another.
The table shows the payments with three different interest rates, including 12.35% (the average rate on a personal loan as of November 2023).
| 8.00% | 12.35% | 15.00% |
|---|
| Two-Year Repayment | $2,261.36/month, $4,272.75 in interest over time | $2,361.85/month, $6,684.50 in interest over time | $2,424.33/month, $8,183.98 in interest over time |
|---|
| Seven-Year Repayment | $779.31/month, $15,462.10 in interest over time | $892.02/month, $24,929.90 in interest over time | $964.84/month, $31,046.37 in interest over time |
|---|
| 10-Year Repayment | $606.64/month, $22,796.56 in interest over time | $727.51/month, $37,300.90 in interest over time | $806.67/month, $46,800.97 in interest over time |
|---|
Data source: Author's calculations.
Should you take out a $50,000 loan?
As you can see, the monthly payments on a $50,000 personal loan are very substantial. Even if you take 10 years to repay your debt, you'll be sending hundreds of dollars a month to a lender. You can't use it to invest for retirement or do anything else (like covering your living expenses). So you don't want to make the decision lightly.
It's not surprising the payments and interest costs are so high, since $50,000 is a lot of money. If you are considering borrowing that much, the first big question to ask yourself is whether you really need such a large sum. Could you save a little bit longer to cover more of the costs in cash, or scale down the scope of whatever you are borrowing for?
You'll also want to consider whether a personal loan is the right type of loan. If you're borrowing for a car, for example, it's worth comparing the rate on personal loans to the rate on car loans. Car loans may have a lower interest rate because they are secured (the car acts as collateral to guarantee repayment). If you're doing home improvements, a home equity loan could be a better option. The interest may be deductible if you itemize on your taxes and are improving the home that is securing the loan.
Finally, ask yourself if you are absolutely sure of the following:
- You can afford the loan now and in the future without putting off retirement savings or anything else.
- You are comfortable with the total costs, including interest -- especially since you could end up paying almost double for whatever you are buying if you get a high interest rate and take a long time to repay your loan.
- Whatever you are borrowing for is going to improve your situation substantially for a long time. For example, a home improvement project may be worth it since it will increase your home's value and make your property more livable -- but what about a wedding, which will be over in a day?
If you can't afford the loan, aren't comfortable with total costs, and feel as if the loan will be worth it over the long haul, do not even consider borrowing $50,000. Save up for whatever you're buying -- or scale down your expectations -- instead.
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
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.
What would the monthly payment be on a $50,000 personal loan? ›
Example Monthly Payments on a $50,000 Personal Loan
| Payoff period | APR | Monthly payment |
|---|
| 12 months | 15% | $4,513 |
| 24 months | 15% | $2,424 |
| 36 months | 15% | $1,733 |
| 48 months | 15% | $1,392 |
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 the monthly payment on a $40,000 personal loan? ›
The monthly payment on a $40,000 loan ranges from $547 to $4,018, depending on the APR and how long the loan lasts. For example, if you take out a $40,000 loan for one year with an APR of 36%, your monthly payment will be$4,018.
How long does it take to pay off a $50,000 loan? ›
It will take 47 months to pay off $50,000 with payments of $1,500 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.
How to qualify for a $50,000 personal loan? ›
If you're looking for a $50,000 personal loan, consider borrowing from an online lender, bank, or credit union. You'll need to have sufficient income, a good-enough credit score, and a reasonable DTI to qualify.
What are personal loan rates right now? ›
Average Overall Personal Loan Rates
| This week's rates | Last week's rates |
|---|
| Average overall rate | 21.11% | 20.90% |
| Average low rate | 11.58% | 11.18% |
| Average high rate | 30.64% | 30.62% |
| Highest rate | 99.99% | 99.99% |
1 more rowMany give preference to borrowers with good or excellent credit scores (690 and above), but some lenders accept borrowers with bad credit (a score below 630). The typical minimum credit score to qualify for a personal loan is 560 to 660, according to lenders surveyed by NerdWallet.
Can I get a 50k loan with a 650 credit score? ›
You can borrow as much as $40,000 - $100,000+ with a 650 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.
Is it hard to get a personal loan? ›
Personal loans generally aren't hard to get and are available from credit unions, banks, and online lenders. There are various types of personal loans to consider, depending on how much money you need to borrow.
If you take a loan for five years and your interest rate is 4%, your monthly payment for a $40,000 loan will be $737. Remember that the longer the loan period, the more money you will overpay to the bank.
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 a $10,000 loan for 5 years? ›
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| Loan Amount | Loan Term (Years) | Estimated Fixed Monthly Payment* |
|---|
| $10,000 | 5 | $207.54 |
| $15,000 | 3 | $463.09 |
| $15,000 | 5 | $313.13 |
| $20,000 | 3 | $617.45 |
13 more rowsGetting a $50,000 personal loan can be easy if you meet the qualification requirements. A good to excellent credit score typically makes it easier for a borrower to get a loan, while individuals with bad credit may find it difficult.
How to pay off a $50,000 loan fast? ›
How to pay off a loan early
- Check if you have a prepayment penalty. ...
- Consider switching to biweekly payments. ...
- Make extra payments whenever possible. ...
- Adjust your budget to cut expenses. ...
- Bring in extra income. ...
- Think about refinancing your loan. ...
- Pros of paying off a loan early. ...
- Cons of paying off a loan early.
Term length
| Mortgage Amount | Term Length | Monthly Repayments |
|---|
| £50k | 20 years | £316 |
| £50k | 25 years | £278 |
| £50k | 30 years | £253 |
| £50k | 35 years | £237 |
3 more rowsFeb 12, 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 rowsDifferent lenders have varying minimum credit score requirements for a $30,000 personal loan. Generally, a score of 670 or higher is recommended to access better interest rates and terms.
How much is the monthly payment on a $25,000 dollar loan? ›
Here are the monthly payments on a $25,000 personal loan
| Interest Rate | Repayment Timeline | Monthly Payment |
|---|
| 11.48% | 5 Years | $549.65 |
| 6.00% | 10 Years | $277.55 |
| 18.00% | 10 Years | $450.46 |
Aug 28, 2023
