How Much Is the Monthly Payment on a $10,000 Personal Loan?

Published on Jan. 17, 2024

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KEY POINTS

The monthly payment on a personal loan depends on the interest rate and the loan repayment term.
A higher interest rate or a shorter repayment period means a $10,000 loan would be more expensive.
Be sure you consider the total cost of a loan (with total interest and any fees) before deciding to borrow.

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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%).

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	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.

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Christy Bieber

Christy Bieber is a full-time personal finance and legal writer with 15 years of experience. She has a JD from UCLA and is a former college instructor.

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