What Is an Annual Percentage Rate (APR) on a Personal Loan?
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
How does APR work on a personal loan?
APR vs. interest rate: What’s the difference?
Lender 1 | Lender 2 | |
---|---|---|
Interest rate | 10%. | 11%. |
Origination fee | $250 (5% fee). | $100 (2% fee). |
Monthly payment | $161. | $164. |
APR | 13.4%. | 12.4%. |
Total cost | $1,058. | $993. |
Compare APRs for personal loans
Loan details
Your loan estimate
Monthly payment
$212.47
$10,000
$2,748.23
$12,748.23
07 / 2030
Show amortization schedule
What's a good APR for a personal loan?
Borrower credit rating | Score range | Estimated APR |
---|---|---|
Excellent | 720-850. | 13.31%. |
Good | 690-719. | 16.48%. |
Fair | 630-689. | 20.23%. |
Bad | 300-629. | 20.62%. |
Bad-credit loan APRs
Article sources
- 1. National Bureau of Economic Research. Prodigals and Projecture: An Economic History of Usury Laws in the United States from Colonial Times to 1900. Accessed May 2, 2025.
- 2. Federal Register. Federal Interest Rate Authority: A Rule by the Federal Deposit Insurance Corporation on 07/22/2020. Accessed May 2, 2025.
- 3. Federal Reserve Bank of St. Louis. Finance Rate on Personal Loans at Commercial Banks, 24 Month Loan. Accessed May 23, 2025.
- 4. Consumer Financial Protection Bureau. What Is a Debt Relief Program and How Do I Know if I Should Use One?. Accessed Jan 16, 2025.
- 5. Experian and Oliver Wyman. Financial Inclusion and Access to Credit. Accessed Jan 23, 2025.
- 6. Internal Revenue Service. Canceled debt – Is it taxable or not?. Accessed Apr 1, 2025.
- 7. National Credit Union Administration. Credit Union and Bank Rates 2024 Q4. Accessed May 23, 2025.
- 8. Federal Reserve. Military Lending Act. Accessed May 2, 2025.
- 9. Consumer Financial Protection Bureau. Consumer Use of Buy Now, Pay Later and Other Unsecured Debt. Accessed Jan 24, 2025.
- 10. Center for Responsible Lending. Unsafe Harbor: The Persistent Harms of High-Cost Installment Loans. Accessed May 2, 2025.
- 9. Consumer Financial Protection Bureau. Consumer Use of Buy Now, Pay Later and Other Unsecured Debt. Accessed Jan 27, 2025.
- 12. Internal Revenue Service. Retirement Topics - Plan Loans. Accessed Apr 8, 2025.
- 13. Internal Revenue Service. Retirement topics: Exceptions to tax on early distributions. Accessed Apr 8, 2025.
- 14. Administrative Office of the U.S. Courts. Bankruptcy Basics. Accessed Apr 8, 2025.
More like this