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How Much Does a $10,000 Installment Loan Cost per Month?

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Borrowing a large amount of money can feel overwhelming when you consider all the details involved in getting a loan. There are many different lenders and types of installment loans available. The big question is always, how much would my monthly payment on a loan be when borrowing $10,000 or more?

Considering a smaller loan? Read our tips about monthly payments for smaller installment loans.

How Is a Loan Monthly Payment Calculated?

Many factors determine your loan monthly payment.

Loan Amount

The more money you borrow, the bigger your monthly payment will be.

Payback Timelines

The time it takes to repay your loan can range from one to seven years, sometimes more. If you want to pay it off more quickly, each payment will be larger.

Interest Rates

Interest rates are often calculated based on your credit score. The better your credit, the lower your interest rate may be. Available interest rates can vary widely from lender to lender. That’s why it is essential to know the terms and conditions of the loan you are applying for.

How to Calculate Your Monthly Payment

Once you know the terms of your loan, you can find loan calculators online to help you estimate your monthly loan payment. You will need to know:

  • The amount of the loan
  • The amount of time you have to pay it back
  • The interest rates the loan was contracted at
  • Any other fees you might be charged

To give you an example of what your monthly payment might be, we’ll use a lower percentage of 12% and a higher rate of 22% and run the numbers. These calculations all assume you’re making one payment per month; your lender may offer the option for a different payment schedule, such as biweekly.

How Much Would a $10,000 Loan Cost?

A $10,000 loan that needs to be paid back in five years only differs about $53 in monthly payments between the 12% and 22% interest rates.

Loan Amount Years to Payback Interest Rate Monthly Payment
$10,000 5 12% $222.44
$10,000 5 22% $276.19


Note that the interest rate makes a significant difference in the total cost of the loan. In this example, the loan costs $13,346.67 at 12% interest. With 22% interest, the total amount repaid is $16,571.35. The same principle applies to the examples below.

How Much Would a $20,000 Loan Cost?

The same loan but at $20,000 differs quite a bit more per month. At the higher interest rate, you’re paying about $108 more each month.

Loan Amount Years to Payback Interest Rate Monthly Payment
$20,000 5 12% $444.89
$20,000 5 22% $552.38


How Much Is the Monthly Payment on a $35,000 Loan?

A $35,000 loan at 22% costs just over $188 more per month than the same five-year loan at 12% interest.

Loan Amount Years to Payback Interest Rate Monthly Payment
$35,000 5 12% $778.56
$35,000 5 22% $966.66


This trend continues as the loan amount increases.

How Can I Make a Large Loan More Affordable?

There are a few things you can do to help make your loan payment a little more reasonable. Some of these tips may also play into whether you can qualify for a loan.

Credit Score

If your credit score is less than stellar, try to improve it before applying for a larger loan. Pay off outstanding debts and smaller installment loans. Your credit score can also get a boost if you pay your regular bills on time.

Watch how a lender first looks at your credit. If lenders ask for your full credit report, it could mean they’re unsure about your credit history and want to look closer at why you have a certain credit score.

Current Debt

Lenders often consider the amount of debt you already have. You can improve this factor by paying off your smaller outstanding loans.

Length of Time

The longer you have to repay the loan, the smaller your monthly payment will be. However, this also affects the total amount of interest you will pay. Consider this example:

Loan Amount Years to Payback Interest Rate Total Payment
$20,000 5 12% $444.89
$20,000 10 12% $286.94


While the monthly payment is much smaller when stretched over 10 years, that borrower ends up repaying $34,433.03 overall. Over five years, the total cost of the loan is only $26,693.34.

Other Fees

Will you be charged additional fees? How much will they charge you if you are late with your monthly payment? Is there a fee for paying off your loan early? Make sure you know the answers to these questions.

Type of Installment Loan

Consider using a co-signed loan or one that takes assets and collateral (things you own) into account to determine your loan terms. These loans can have lower interest rates because the lender has back-up ways for getting their money back if you can’t make payments.

Consider Power Finance Texas for Small Installment Loans

Texas residents like you turn to Power Finance Texas for fast and easy loans when they need emergency funds. Apply online today with no credit check!