You can easily check the monthly payment with these 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 $5,000 Personal Loan
The table below illustrates some potential payments on a $5,000 personal loan with a 15% APR and various loan periods.
| Loan term (months) | APR (%) | Total interest ($) | Monthly payment ($) |
| 12 | 15 | 415 | 451 |
| 24 | 15 | 818 | 242 |
| 36 | 15 | 1,240 | 173 |
| 48 | 15 | 1,679 | 139 |
| 60 | 15 | 2,137 | 119 |
| 72 | 15 | 2,612 | 106 |
| 84 | 15 | 3,105 | 96 |
It is important to note that your monthly payment may differ much from this since the annual percentage rate on a personal loan may range from 3% to 36%.
We can see from the table that the loan term positively correlates with the interest rate. Therefore, it's important to examine your finances before taking out a $5000 personal loan to check whether you can afford the monthly installments. If you determine it's a wise decision for you, search for the best deals from various lenders.