When you take out a personal loan, the Annual Percentage Rate or APR and the loan payoff duration are the factors that determine how much the monthly payment is. An $85,000 loan can be paid back in 12 months and up to 84 months. As for the interest rate, the APR ranges between 4% and 36% with an average of 15%.
If you repay an $85,000 personal loan in one year with the highest APR of 36%, your payment will be $8,539 per month, but if the payoff duration is 7 years and you have the lowest APR of 4%, your monthly payment becomes $1,162, which is the lowest amount you can pay for an $85K loan. If you can afford to pay any value between those two numbers, you can easily take out an $85k personal loan.
The below table will show you how much you should pay with the average APR of 15% with all payoff duration options, ranging from 1 to 7 years.
| Loan Duration | APR | Monthly Payment | Total Interest |
| 1 year | 15% | $7,672 | $7,063 |
| 2 years | 15% | $4,121 | $13,913 |
| 3 years | 15% | $2,947 | $21,076 |
| 4 years | 15% | $2,366 | $28,549 |
| 5 years | 15% | $2,022 | $36,329 |
| 6 years | 15% | $1,797 | $44,407 |
| 7 years | 15% | $1,640 | $52,779 |
Conclusion
The amount you need to pay per month when you want to borrow money is the most important factor to know before applying for a personal loan. This article has given you all of the information you need to know to borrow money and will help you decide if you can afford to borrow $85,000. As long as you can manage to pay the monthly payment, you are good to go and can apply right away.