You can easily do it using the formula.
Here are the needed parameters.
-
Principal: the amount borrowed.
-
Annual percentage rate (assuming that additional charges have been added)
-
Loan term: the period in which the loan will be repaid.
Then you use this formula;
M= P*R*(1+R)N
(1+R)N-1
Where
M is the monthly payment,
P is the principal,
R is APR/12 (since there are 12 months in a year), and
N is the loan term in months.
Possible Monthly Payments on a $30,000 Personal Loan
The table below shows some possible payments on a $30,000 personal loan with a 15% APR and different loan terms.
|
Loan term (months) |
APR (%) |
Total interest ($) |
Monthly payment ($) |
|
12 |
15 |
2,493 |
2,708 |
|
24 |
15 |
4,910 |
1,455 |
|
36 |
15 |
7,439 |
1,040 |
|
48 |
15 |
10,076 |
835 |
|
60 |
15 |
12,822 |
714 |
|
72 |
15 |
15,673 |
634 |
|
84 |
15 |
18,628 |
579 |
Note that your monthly payment can be very different from this as the annual percentage rate on a personal loan has a wide range of 3%-36%.
The Average Interest Rate on a Personal Loan
The interest rate on a personal loan has a very wide range as it is based on many factors, most significantly, your credit score.
Generally, the higher your credit score, the lower the interest rate you will pay, and vice versa. The table below shows the average interest rates for different credit score ranges.
|
Credit score |
Average interest rate (%) |
|
Excellent (720-850) |
12.5 |
|
Good (690-718) |
15.5 |
|
Average (630-189) |
19.9 |
|
Poor (300-629) |
32.0 |