Monthly Payment Comparison — $10,000 Loan
| APR | 12 months | 24 months | 36 months | 60 months |
|---|---|---|---|---|
| 8% | $869 ($428 int) | $452 ($843 int) | $313 ($1,280 int) | $203 ($2,166 int) |
| 12% | $888 ($660 int) | $470 ($1,289 int) | $332 ($1,957 int) | $222 ($3,346 int) |
| 18% | $917 ($1,004 int) | $499 ($1,979 int) | $362 ($3,015 int) | $254 ($5,227 int) |
| 24% | $947 ($1,360 int) | $529 ($2,697 int) | $393 ($4,148 int) | $289 ($7,332 int) |
Frequently Asked Questions
What is a good interest rate for a personal loan?
Personal loan rates range from 6% to 36% APR. Borrowers with excellent credit (720+) typically qualify for 6–12%. Average credit (640–719) gets 13–20%. Below 640 often means 20–36% or denial. Credit unions often offer the best rates.
How is a personal loan payment calculated?
Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P = loan amount, r = monthly interest rate, n = number of months. A $10,000 loan at 12% for 36 months = $332/month.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees (origination fees, etc.). Always compare APR, not just interest rates.
Should I get a personal loan or use a credit card?
Personal loans are better for large amounts ($5,000+) and longer repayment periods. They typically have lower rates than credit cards (avg 21% APR). Credit cards are better for small, short-term needs where you can pay off quickly.
How does loan term length affect total cost?
Longer terms = lower monthly payments but much higher total interest. A $15,000 loan at 10%: 24 months = $692/mo, $1,608 total interest. 60 months = $319/mo, $4,122 total interest. You pay 2.5x more interest for the longer term.