If you need to borrow a large amount of money, you may be considering a personal loan. Some personal loan lenders allow you to borrow as much as $50,000, or even $100,000 so you can finance very large purchases that it generally wouldn't make sense to put on a credit card.
Before you move forward with taking out a large personal loan, though, you'll want to get a clear idea of what it will cost you. Specifically, you should look at both monthly payment and total repayment costs.
Here's what a $50,000 loan would cost you each month
The costs of a $50,000 loan are shown in the table below. Both your monthly payment and total interest costs change depending on how long you take to repay your loan and what interest rate you are offered, since rates do vary from one lender to another.
The table shows the payments with three different interest rates, including 12.35% (the average rate on a personal loan as of November 2023).
| 8.00% | 12.35% | 15.00% |
|---|
| Two-Year Repayment | $2,261.36/month, $4,272.75 in interest over time | $2,361.85/month, $6,684.50 in interest over time | $2,424.33/month, $8,183.98 in interest over time |
|---|
| Seven-Year Repayment | $779.31/month, $15,462.10 in interest over time | $892.02/month, $24,929.90 in interest over time | $964.84/month, $31,046.37 in interest over time |
|---|
| 10-Year Repayment | $606.64/month, $22,796.56 in interest over time | $727.51/month, $37,300.90 in interest over time | $806.67/month, $46,800.97 in interest over time |
|---|
Data source: Author's calculations.
Should you take out a $50,000 loan?
As you can see, the monthly payments on a $50,000 personal loan are very substantial. Even if you take 10 years to repay your debt, you'll be sending hundreds of dollars a month to a lender. You can't use it to invest for retirement or do anything else (like covering your living expenses). So you don't want to make the decision lightly.
It's not surprising the payments and interest costs are so high, since $50,000 is a lot of money. If you are considering borrowing that much, the first big question to ask yourself is whether you really need such a large sum. Could you save a little bit longer to cover more of the costs in cash, or scale down the scope of whatever you are borrowing for?
You'll also want to consider whether a personal loan is the right type of loan. If you're borrowing for a car, for example, it's worth comparing the rate on personal loans to the rate on car loans. Car loans may have a lower interest rate because they are secured (the car acts as collateral to guarantee repayment). If you're doing home improvements, a home equity loan could be a better option. The interest may be deductible if you itemize on your taxes and are improving the home that is securing the loan.
Finally, ask yourself if you are absolutely sure of the following:
- You can afford the loan now and in the future without putting off retirement savings or anything else.
- You are comfortable with the total costs, including interest -- especially since you could end up paying almost double for whatever you are buying if you get a high interest rate and take a long time to repay your loan.
- Whatever you are borrowing for is going to improve your situation substantially for a long time. For example, a home improvement project may be worth it since it will increase your home's value and make your property more livable -- but what about a wedding, which will be over in a day?
If you can't afford the loan, aren't comfortable with total costs, and feel as if the loan will be worth it over the long haul, do not even consider borrowing $50,000. Save up for whatever you're buying -- or scale down your expectations -- instead.
FAQs
The monthly payment on a $50,000 loan ranges from $683 to $5,023, depending on the APR and how long the loan lasts. For example, if you take out a $50,000 loan for one year with an APR of 36%, your monthly payment will be $5,023.
Is it hard to get a 50k personal loan? ›
For a $50,000 personal loan, lenders will likely want to see a strong credit score and history. Requirements vary from lender to lender, but a relatively high credit score may be a prerequisite to qualify for a sizable loan.
What credit score do I need for a $50,000 loan? ›
You'll have the best chance of getting approved with an excellent credit score, such as one above 800. You may struggle to find a lender that will approve a $50,000 loan for folks with poor or bad credit. A "poor" credit score is considered 580 or under. Most lenders require at least a "fair" score of around 670.
How much would a $5000 personal loan cost a month? ›
What is the monthly payment on a $5,000 personal loan?
| Payoff period | APR | Monthly payment |
|---|
| 1 year | 15% | $451 |
| 2 years | 15% | $242 |
| 3 years | 15% | $173 |
| 4 years | 15% | $139 |
3 more rowsIt will take 47 months to pay off $50,000 with payments of $1,500 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.
How much would a $50,000 personal loan cost per month? ›
The monthly payment on a $50,000 loan ranges from $683 to $5,023, depending on the APR and how long the loan lasts. For example, if you take out a $50,000 loan for one year with an APR of 36%, your monthly payment will be $5,023.
How to pay off a $50,000 loan fast? ›
5 Ways To Pay Off A Loan Early
- Make bi-weekly payments. Instead of making monthly payments toward your loan, submit half-payments every two weeks. ...
- Round up your monthly payments. ...
- Make one extra payment each year. ...
- Refinance. ...
- Boost your income and put all extra money toward the loan.
With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).
How much of a loan can I get with a 750 credit score? ›
You can borrow $50,000 - $100,000+ with a 750 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
What kind of loan can I get with a 720 credit score? ›
Best personal loans
- Axos Bank: Best for excellent credit.
- LightStream: Best for fast funding.
- Discover: Best for good credit.
- Avant: Best for customer support.
- U.S. Bank: Best for repayment term variety.
- Oportun: Best for building credit.
- Upstart: Best for thin credit.
- Citi: Best for rate discounts.
Many lenders offer personal loans ranging anywhere from $500 to $50,000. Some banks and financial institutions cap borrowing amounts at around $20,000, while others offer loans up to $100,000 to borrowers with exceptional credit.
How much is the monthly payment on a $25,000 personal loan? ›
Advertising Disclosures
| Loan Amount | Loan Term (Years) | Estimated Fixed Monthly Payment* |
|---|
| $20,000 | 3 | $617.45 |
| $20,000 | 5 | $415.07 |
| $25,000 | 3 | $771.81 |
| $25,000 | 5 | $518.84 |
13 more rowsBorrowing $50,000 is a significant responsibility. Because of the large amount, lenders typically have stricter eligibility criteria to qualify for a loan. This often includes meeting a minimum credit score requirement.
How much a month to pay off $50,000? ›
Here's what a $50,000 loan would cost you each month
| 8.00% | 12.35% |
|---|
| Seven-Year Repayment | $779.31/month, $15,462.10 in interest over time | $892.02/month, $24,929.90 in interest over time |
| 10-Year Repayment | $606.64/month, $22,796.56 in interest over time | $727.51/month, $37,300.90 in interest over time |
1 more rowJan 20, 2024
The loan value of $50,000 is multiplied by the interest rate of 9% to determine the annual interest. Thus, the amount of annual interest is $4,500.
Can I get a personal loan of $50,000? ›
Loan amounts range from $2,000 to $50,000. Repayment terms range from 36 - 60 months. interest rates range from 8.99% to 23.99%. The most credit worthy applicants may qualify for a lower rate while longer-term loans may have higher rates.
How much can you get approved for making 50k? ›
On a $50,000 salary, you could potentially afford a house worth between $160,000 to $190,000, depending on your specific financial situation and local market conditions. While this may limit your options in some high-cost areas, there are still many markets where homeownership is achievable at this income level.
How much of a loan can you get with 50k? ›
On a $50,000 salary (before tax), you can borrow between $200,000 and $350,000 for the purpose of purchasing a property to live in to be repaid over a 30 years loan term.
What credit score do I need for a $60,000 personal loan? ›
Know your credit history: Because $60,000 is such a large sum of money and there are fewer lenders that offer such large loans, you'll find it's harder to qualify for. You'll typically need good or excellent credit (a FICO score of 670 or higher) and may need to meet certain income requirements.
