Once you enter your loan details, the personal loan calculator displays three numbers, which you can use to evaluate and compare various loans. Here's what the numbers mean: Show
If you choose a longer loan term, your monthly payment will be lower, and your total interest will be higher. With a shorter loan term, your monthly payment will be higher, but your total interest will be lower. Aim for the shortest possible loan term that has payments you can still afford. Here's how the payment details change depending on the loan term you choose, assuming a $10,000 loan at 10% interest: Loan TermMonthly PaymentTotal Interest PaidTotal Paid12 months$879.16$549.91$10,549.9124 months$461.45$1,074.78$11,074.7836 months$322.67$1,616.19$11,616.1948 months$253.63$2,174.04$12,174.0460 months$212.47$2,748.23$12,748.23 In addition to interest, your lender may charge personal loan fees, which might include:
How Is the Interest Calculated on a Personal Loan?Each monthly payment you make consists of two parts:
Your monthly payment stays the same for the life of the loan. However, the amounts that go toward interest and principal change. That's because, with amortized loans, the interest portion of the monthly payment depends on how much you still owe. When you first get a loan, the interest payments are larger because the balance is larger. As your balance gets smaller, the interest payments get smaller—and more of your payment goes toward paying off the loan. Here's a sample amortization schedule for a 12-month, $1,000 loan with a 15% interest rate: Payment MonthTotal Monthly PaymentPrincipal PaymentInterest PaymentTotal InterestRemaining Balance1$90.26$77.76$12.50$12.50$922.242$90.26$78.73$11.53$24.03$843.513$90.26$79.71$10.54$34.57$763.804$90.26$80.71$9.55$44.12$683.095$90.26$81.72$8.54$52.66$601.376$90.26$82.74$7.52$60.18$518.637$90.26$83.78$6.48$66.66$434.858$90.26$84.82$5.44$72.09$350.039$90.26$85.88$4.38$76.47$264.1410$90.26$86.96$3.30$79.77$177.1911$90.26$88.04$2.21$81.99$89.1412$90.26$89.14$1.11$83.10$0.00 You can calculate the monthly interest payment yourself if you prefer—or if you're just interested in seeing the math. Here's how:
An easy way to multiply by a percentage is to multiply the two numbers (for example, $1,000 x 1.25) and then divide by 100. So, $1,000 x 1.25 = $1,250; then $1,250 ÷ 100 = $12.50. What Is the Average Interest Rate on a Personal Loan?Interest rates vary by state, lender, and a variety of other factors, including your:
So, what's the average interest rate for a personal loan? That's not easy to pin down because there are so many factors involved. Broadly speaking, however, we can break down the average interest rate by loan term and credit score. The average interest rate for a 24-month personal loan was 9.34% as of August 2020, according to the most recent data from the Federal Reserve. Meanwhile, the national average interest rate for a 36-month personal loan was 9.21% at credit unions and 10.28% at banks as of June 2020 (the most recent data available), according to the National Credit Union Administration. Interest rates for personal loans vary considerably depending on your credit score. In general, the higher your credit score, the lower your interest rate will be. Here are the average upper limit interest rates you might expect, based on different credit scores: Credit ScoreAverage Interest RateExcellent (720 – 850)12.5%Good (690 – 719)15.5%Average (630 – 689)19.9%Poor (300 – 629)32.0% If you have an excellent credit score, you may qualify for a 0% balance transfer credit card, which could be a cheaper option than a personal loan. How Do You Calculate Payments on a Personal Loan?If you want to calculate your monthly loan payment yourself, divide the total amount you'll pay (including the principal and interest) by the loan term (in months). For example, say the total amount you'll pay is $2,400, and the loan term is 24 months. Your monthly loan payment would be $100 ($2,400 ÷ 24 = $100). In general, your monthly payment stays the same for the entire loan term. However, the payment may change if you ask your lender for a deferment. A deferment allows you to take a scheduled break from payments if you have a financial hardship—due to a job loss, medical emergency, or national emergency. Keep in mind that the interest may continue to accrue during the deferment period. If it does, you'll have a higher total amount to pay off—which means either a higher monthly payment moving forward or a longer loan term (or both). If you’re getting a deferment, clarify the terms with the lender before you agree to it. What Are the Most Common Term Lengths for a Personal Loan?Personal loans come in various term lengths, but most are between two and five years. Still, you can find personal loans with longer payback periods—as high as 15 years. With a longer-term loan, however, keep in mind that your rates could be higher, and you will end up paying more interest overall than you would with a shorter-term loan. Moreover, a long-term personal loan also means having a prolonged debt burden, plus more opportunities to make late payments, which could damage your credit. How to Use a Personal Loan CalculatorOur loan calculator shows what your monthly payment, total interest paid, and total paid amounts might be, based on inputs you provide. That information is helpful for a few reasons:
If changing the loan term length doesn't get you the loan you want, you may be able to lower your loan costs if you:
Where Can I Get a Personal Loan?In general, you have three choices for where to get a personal loan: Online lenders, credit unions, and banks. Here's a quick look at each option: Online lendersNot surprisingly, the online personal loan market is extremely competitive. For borrowers, that can be a good thing: To attract customers, online lenders often offer benefits like competitive rates, low/no fees, and flexible payment options. In addition, the online option can be the fastest and most convenient way to get your money. Credit unionsCredit unions offer financial services to people who live, study, work, or worship in the community. To apply for a personal loan, you'll have to be a member of the credit union, and you may be required to have a minimum savings account balance. Still, credit unions often have attractive rates, and they tend to be more willing to work with borrowers who have lower credit scores and thin credit histories. BanksBanks typically have higher interest rates and tougher lending requirements than credit unions, but you don't have to worry about the membership issues. And, if you're already a customer at the bank—especially a local community bank—you might get perks like lower rates or being able to qualify for a bigger loan. The Bottom LineTo find the best personal loan for your financial situation, be sure to shop around and compare rates, fees, and repayment terms from several lenders. And, of course, be sure to use our loan calculator to test out different options to find a scenario that fits your goals and budget.—Jean Folger What's the monthly payment on a 10000 loan?The monthly payment on a $10,000 loan ranges from $137 to $1,005, depending on the APR and how long the loan lasts. For example, if you take out a $10,000 loan for one year with an APR of 36%, your monthly payment will be $1,005.
How long does it take to get a $10000 loan?You can find a $10,000 personal loan through a traditional bank, credit union or online lender. Depending on where you apply, it's possible to receive a quick decision and get funded in one to two business days. Some lenders also offer same-day funding to borrowers who need fast cash.
What score do you need for a 10000 loan?To get approved for a $10,000 personal loan, you'll typically need a credit score of 620 or higher — though keep in mind that some lenders are willing to work with borrowers who have scores lower than this.
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