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How Much Would a $1,000 Loan Cost per Month?

When you need money fast, it can be easy to overlook the details involved in getting a loan. There are many different types of installment loans available, including standard installment loans that you pay off monthly, buy now and pay later, and flex loans. Each is an option for getting a loan fast. Each type comes with rules and fees you need to be aware of.

How much would a $1,000 loan cost per month? What about $10,000? Let’s look at the factors that go into these questions.

How Is a Loan Monthly Payment Calculated?

Multiple factors determine your loan monthly payment. Some of these are the amount of money you borrow, how long you have to pay it back, and how much interest the lender charges for your loan.

The Amount of Money You Borrow

The biggest factor will be the amount of money you need to borrow. The more money you borrow, the bigger your monthly payment will be.

Payback Timelines

The time it takes to pay back your loan can range from a few weeks to several years. This amount of time usually increases when you borrow larger amounts of money.

Interest Rates

Interest rates are often calculated based on your credit score as well as overall economic conditions. The better your credit, the lower your interest rate may be. Your interest rate is a huge determinant in how much you end up repaying for your loan so it’s important to look at the terms carefully.

How to Calculate Your Monthly Payment

To calculate the cost of your payment, you will need to know:

  • The amount of the loan
  • The repayment period
  • The payment schedule (such as monthly or biweekly)
  • The interest rate
  • Any other applicable fees

To give you a general idea of what to expect for a loan payment each month, let’s consider two possible interest rates: a lower percentage of 12% and a higher percentage of 22%. We’ll show you examples of different loan amounts that need to be paid back within three years at those rates.

These examples all look at the base loan costs and don’t factor in additional fees that vary between lenders.

How Much Would a $1,000 Loan Cost Per Month?

With our sample interest rates, a $1,000 loan paid back in three years ranges from $33.21 to $38.19 monthly.

Loan Amount Years for Repayment Interest Rate Total Payment
$1,000 3 12% $33.21
$1,000 3 22% $38.19

While this example shows very small monthly payments, it isn’t typical to pay off a loan for a small amount like $1,000 to $3,000 over three years. Your lender may ask you to repay a small amount in just a few months or over the course of a single year.

How Much Would a $5,000 Loan Cost Per Month?

A $5,000 loan that must be paid back in three years can cost $166.07 to $190.95 per month in our example.

Loan Amount Years for Repayment Interest Rate Total Payment
$5,000 3 12% $166.07
$5,000 3 22% $190.95

How Much Would a $10,000 Loan Cost Per Month?

A $10,000 loan that must be paid back in three years can cost between $332.14 and $381.90 a month.

Loan Amount Years for Repayment Interest Rate Total Payment
$10,000 3 12% $332.14
$10,000 3 22% $381.90

 

The same rules apply to any amount of money you need to borrow. Your lender will determine your payment based on your credit rating, income, and many other factors. You can find more information about the costs if you need to borrow more than $10,000 here.

Power Finance Texas Provides Small Loans for Texas Residents

If you are in need of a small loan between $100 and $1,250, use our quick and easy online application to (almost) instantly see if you qualify for a personal installment loan.