Owning a small business can mean keeping a lot of plates spinning, including making sure the cash is flowing during fluctuations in income and sales. You might need to buy more materials, pay additional workers, improve your physical location, and deal with other expenses.
When those moments arise, you may need a little outside help to cover costs, and a short-term business loan can be helpful. Here, you’ll learn more about these loans, their pros and cons, and whether they might be right for you.
Key Points
• Short-term business loans provide quick access to cash with a fixed repayment schedule.
• They are commonly used for project start-up expenses, emergency repairs, seasonal staffing, and buying discounted inventory.
• High interest rates and quick repayment terms are significant drawbacks.
• The ease of obtaining these loans can lead to debt accumulation.
• Business credit cards and short-term lines of credit can be viable alternatives.
What Is a Short-Term Small Business Loan?
A short-term small business loan is a loan that is designed to help small businesses maintain cash flow and cover small expenses. Because they are meant to be paid off on a shorter timeline (usually within three to 24 months) than long-term loans, they tend to have higher interest rates and can be secured very quickly. Basically, they can get you cash fast.
💡 Quick Tip: Need help covering the cost of a wedding, honeymoon, or new baby? A SoFi personal loan can help you fund major life events — without the high interest rates of credit cards.
What Can You Use a Short-Term Business Loan for?
There are several common uses for short-term loans. A popular one is to cover project start-up costs. If your business is launching a new product or service, a short-term loan can help you avoid disrupting your business’s cash flow.
They can also help bridge cash flow gaps related to uneven sales or seasonal effects, cover emergency repairs, and purchase discounted inventory that you’re confident will sell fast and at a profit.
A short-term loan can also help small businesses take advantage of unexpected growth opportunities by giving them the capital they need to keep production running in a short time period.
What Are the Drawbacks of Short-Term Business Loans?
In addition to high interest rates, short-term loans often require frequent repayments. Instead of the customary monthly payments that come with a lot of loans, short-term business loans often require weekly, and in some cases daily, repayments. While these payments tend to be small, they can be difficult to manage, particularly if your business has uneven sales or a lower cash-flow.
There’s also a risk of accumulating debt when using short-term business loans. Because they can be so easy to get (note: there are still eligibility requirements for these types of loans), using them could potentially lead to a business owner relying on this type of small business debt financing.
This could lead to a debt trap where someone would continue rolling over their short-term debt instead of paying it off on the predetermined repayment timeline. Ultimately, rolling over the debt means the business owner would accrue significant interest if they weren’t able to pay the short-term business loan within the initial term.
There are a number of alternative financing options when you need cash for your company.
• A business credit card is another way to cover small expenses that you plan to pay back quickly. On the flip side, business credit cards can come with high interest rates. And credit card debt is considered “revolving,” which involves borrowing against a credit limit, as opposed to paying off your debt on a defined term.
• Short-term lines of credit can help you manage day-to-day cash flow, too. Lines of credit can help provide flexibility for business owners. You can borrow up to a set amount of money but are only required to pay interest on the actual amount of money that you borrow.
You can then borrow and repay the funds on a payment schedule similar to how a credit card works. Similar to credit cards, this is considered a “revolving debt.” Short-term lines of credit may come with maintenance fees. And the interest rate could go up if you fail to pay on time.
There are many financing options available to help pay for your business expenses. Short-term business loans can help you get the cash you need for your business quickly, and pay it off on the predetermined schedule, or add additional payments as your cash flow picks back up again.
While you cannot use a personal loan for business expenses, there may be times in your life that a personal loan is appropriate; say, if you want to consolidate your credit card debt (which could free up funds for your small business). In those situations, see what SoFi offers.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.
FAQ
How long is a short-term business loan?
Short-term business loans typically have a term of three to 24 months for repayment.
What can short-term business loans be used for?
A short-term loan could be used in a variety of ways. If extra inventory or staffing is needed during an upcoming busy season (such as the holidays), a short-term loan could be helpful. Another example: This kind of loan might also help finance the expense of a repair or new piece of equipment needed by a business.
What is a long-term business loan?
A long-term business loan lends cash to an enterprise with a repayment schedule that usually lasts 10 to 20 years.
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Small Business Loans
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• Student loans are installment loans, meaning they are disbursed in a lump sum and repaid in fixed, scheduled payments over time.
• Revolving credit (e.g., credit cards) allows continuous borrowing up to a credit limit, with variable repayment amounts.
• Installment loans offer predictable payments and typically lower interest rates, making them easier to budget for than revolving credit.
• Federal and private student loans are both installment loans, but federal loans generally come with more borrower protections and repayment options.
• Alternative ways to pay for school include grants, scholarships, work-study, personal savings, and federal aid.
What Is Revolving Credit?
Revolving credit is an agreement between a lender and an account holder that allows you to borrow money up to a set maximum amount (or credit limit). The account holder can borrow what they need as they need it (up to their credit limit) and choose to pay off the balance in full or make minimum monthly payments on the account.
As the account holder makes repayments, the amount available to borrow is renewed. Account holders can continue to borrow up to the maximum amount through the term of the agreement. Examples of revolving credit include credit cards and home equity lines of credit (HELOCs).
What Is Installment Credit?
Installment credit is a type of credit that allows a borrower to receive a lump sum loan amount up front, then make fixed payments on the loan over a set period of time. Before the borrower signs an agreement for an installment loan, the lender will decide on the interest rate, fees, and repayment terms, which will determine how much the borrower pays each month.
Common examples of installment loans include federal student loans, private student loans, mortgages, auto loans, and personal loans.
And for borrowers who opt to refinance student loans, those loans are installment loans as well.
Revolving Credit vs Installment Credit
Now that you know student loans are installment and not revolving credit, it’s helpful to understand how these two types of credit compare.
Account holders can borrow funds at any time (up to a set limit), repay it, and borrow more as needed.
Account holders borrow one lump sum, the sole amount of money they have access to, and repay it over a set time period.
May come with higher interest rates than installment credit.
May have stricter lending requirements than some revolving credit options, such as credit cards.
Account holders only pay interest on the amount they’ve borrowed at any time, not the total credit limit.
Account holders pay interest on the entire principal amount of the loan from the beginning.
Revolving Credit
Revolving credit is a more open-ended form of credit obligation. Let’s use the example of a credit card:
1. The cardholder uses the card to make purchases as they please, pays them off either in-full or partially each month, and continues to make charges on the line of credit.
2. The amount of money the cardholder spends is their decision (up to their credit limit), and the amount of money they repay each month isn’t set in advance by the lender.
3. The cardholder can pay off the account balance in full each month, or they can opt to pay the minimum and “revolve” the balance over to the next month (though this will accrue interest on the account).
An important note: To avoid any late fees or potential dings to your credit score, it’s important to pay your monthly revolving bill on time. It’s also wise to keep your balances low, as your credit utilization rate is a major factor in your credit scores.
Installment Credit
Installment credit is less open-ended than revolving credit. Installment credit is a loan that offers a borrower a fixed amount of money over a predetermined period of time. When a borrower signs the loan agreement, they know what the monthly payments will be and how they will need to make payments.
Let’s use the example of a student loan:
1. The student borrows a specific dollar amount. The lender specifies the interest rate and repayment terms. In the case of federal student loans, interest rates and terms are set by federal law.
2. The predetermined loan amount is released to the borrower. Typically, the funds are released in a single lump sum payment.
3. The borrower repays the loan based on the agreed upon terms. Terms will be set by the lender for private student loans, or by law for federal student loans.
An important note: If you only have revolving credit (such as a credit card), taking out an installment loan can diversify your credit mix, which is a factor in determining your credit scores. While an installment loan adds to your total debt, its balance does not factor into your credit utilization ratio (which is specific to revolving credit).
Pros and Cons of Installment Credit
Student loans for undergraduate school, as well as student loans that are refinanced, are considered installment loans, which means they come with a starting balance, are disbursed to the qualifying borrower up front and in full, and are repaid over a set amount of time through a fixed number of payments. There are advantages and disadvantages to taking out an installment loan, and it’s important to be aware of them:
Pros of Installment Loans
Cons of Installment Loans
They can be used to finance a major purchase like a house, car, or college education.
They can come with origination fees (a percentage of the loan amount)
They are paid with a set number of payments of the same amount, which can make it easier for budgeting purposes.
Missed or late payments may negatively impact the borrower’s credit score.
For some installment loans, it is possible to reduce interest charges by paying the loan off early.
Depending on the type of installment loan and the lender, there may be penalties or fees for paying off the loan early. (Generally, there are no prepayment penalties for paying off student loans early.)
They offer the option of paying the loan off over a longer period of time.
Longer terms typically mean you’re paying more in interest over the life of the loan.
Pros of Installment Credit
Here’s a closer look at two key advantages of installment credit:
Predictable Payments
Installment credit payments are made on a set schedule that’s determined by the lender. This makes them a predictable, long-term strategy for paying off debt, and also makes it easier to factor them into your budget, especially if the installment loan has fixed interest rates.
The monthly payment for an installment loan with a variable interest rate may occasionally change.
Lower Interest Rates
Installment loans often feature lower average interest rates than credit cards or other forms of revolving credit. This can result in significant savings on interest charges over time, especially for large loan amounts.
Cons of Installment Credit
But there are also disadvantages to installment credit. Two key drawbacks include:
Accumulation of Interest
While often lower than credit card rates, interest on an installment loan is paid over the entire life of the loan, which can add up to a significant amount of money over time, particularly for long-term loans.
Prepayment Penalty
Some loans impose prepayment penalties if a borrower pays their loan off early. This isn’t necessarily the case for all installment loans — as mentioned, student loans generally don’t have prepayment penalties. But it’s important to read the fine print in the loan agreement to determine whether a prepayment fee will be triggered if the loan is paid off early.
Student loans, like other loans, are noted on your credit report and they may affect your credit in both positive and negative ways.
On the plus side, making consistent, on-time payments, can help borrowers establish a positive payment history, which is the most significant factor (35%) in a FICO® credit score. Successfully managing an installment loan can also help diversify your credit mix, which can also have a positive impact on your credit profile.
However, failing to make your loan payments can negatively impact your credit. A federal student loan payment is considered delinquent even when your payment is just one day late. After 90 days of missed payments, your loan servicer will report the delinquency to the national credit bureaus. Late payments can stay on your credit report for up to seven years.
(After 270 days of missed payments, your loan will go into default, which can have very serious consequences for your credit and your financial situation in general. If you are having trouble repaying your student loans, reach out to your lender or loan servicer right away to see what your options are.)
If you apply for a private student loan or student loan refinancing, lenders will typically do a hard credit inquiry, which may temporarily lower your credit score. Most federal student loans do not require hard credit inquiries.
Ways to Pay for School
There are a variety of ways to pay for college, including student loans, savings, financial aid, and scholarships. Here’s a closer look at your options:
Federal Student Loans
Federal student loans are installment loans available to students. To apply, students fill out the Free Application for Federal Student Aid (FAFSA®) each year. Federal student loans have fixed interest rates that are set annually by Congress, offer different repayment options, and have some borrower protections and benefits such as deferment and the option to pursue Public Service Loan Forgiveness.
However, there are borrowing limits for federal student loans, and other changes are coming to the federal student loan program as of the summer of 2026, so students may need to review other sources of financing when determining how they’ll pay for college.
Private Student Loans
Private student loans are installment loans you can use to pay for a college education. Private student loans are offered by private lenders. To apply for them, borrowers can browse the offerings of individual lenders like banks, credit unions, and online lenders and decide which private student loan works best for their finances. As a part of the application process, lenders will generally review the applicant’s (or their cosigner’s) credit history and credit score among other factors.
Private student loans can help bridge funding gaps after other sources of financing — such as federal loans, grants, and scholarships — have already been exhausted. This is because private lenders are not required to offer the same borrower protections as federal student loans. If you think private student loans are an option for you, shop around to find competitive terms and interest rates, and be sure to read the terms and fine print closely.
As mentioned, a borrower may choose to refinance private student loans at a later date, especially if they can qualify for more beneficial terms or a lower interest rate. Federal student loans can also be refinanced, but if a borrower chooses this option, they will lose access to federal benefits and protections like federal deferment and forgiveness.
Personal Savings
Using personal savings to pay for college means less debt and more flexibility. Not only that, but it costs significantly more to borrow money to pay for college than it does to use personal savings.
Using personal savings to pay for college means less debt and more flexibility. Using savings also allows you to save money on interest, which can make college less expensive. That said, not everyone has enough savings to cover the full cost of attending college.
Grants
Unlike student loans, which require repayment, grants are a type of financial aid that doesn’t require repayment. Grants are typically based on financial need. Completing the FAFSA will put you in the running for federal, state, and institutional grants.
A scholarship is a lump sum of funds that can be used to help a student pay for school. Scholarships usually don’t have to be repaid, and can be need-based or merit-based. You can find out about scholarships through your high school guidance office, college’s financial aid office, or by using an online scholarship search tool.
Work-Study Programs
Federal work-study programs allow students with financial need to work on- or off- campus and earn money through part-time jobs. The program encourages students to do work related to their course of study or community service.
Work-study programs are funded by the federal government. Students may be awarded a certain work-study amount by filling out the FAFSA. Not all schools participate in federal work study, however, so if you are interested in this option, make sure your school offers it.
The Takeaway
Student loans are a common form of installment credit. This means they are dispersed as a lump sum and require making fixed, regular payments over a predetermined period. Unlike revolving credit such as credit cards, student loans offer predictable budgeting and often come with lower interest rates.
Managing student installment loans responsibly can positively impact your credit profile. However, late or missed payments can have serious negative consequences. Understanding the differences between installment and revolving credit, and exploring various funding options for education, can empower you to make informed financial decisions for your academic journey and beyond.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
Is a student loan an installment loan?
Yes, a student loan is an installment loan. This means you receive a lump sum of money up front and repay it over a set period with a predetermined number of regular payments.
Is a student loan a revolving loan?
No, a student loan is not a revolving loan. Revolving loans, like credit cards, allow you to borrow varying amounts up to a set credit limit, repay, and then borrow again. Student loans are installment loans, meaning you receive a lump sum and repay it with fixed, scheduled payments over a set period.
What are the benefits of an installment student loan?
The benefits of an installment student loan include predictable payments, which makes budgeting easier, and often lower interest rates compared to revolving credit. They also allow you to finance a major purchase like an education and can help diversify your credit mix.
Can student loans help build credit?
Yes, student loans can help build credit. Making regular, on-time payments on your student loan demonstrates responsible financial behavior, which contributes positively to your payment history — a major factor in your credit score. Successfully managing an installment loan like a student loan can also help diversify your credit mix, which can further enhance your credit profile.
What’s the difference between federal and private student installment loans?
Federal student loans generally offer lower rates and more borrower protections, such as income-driven repayment and potential for loan forgiveness. Also, they typically do not require a hard credit inquiry. Private student loans, offered by banks and other financial institutions, may have fewer borrower protections and repayment options, and usually require a credit check and potentially a cosigner. Interest rates and terms for federal loans are set by law, while private loan terms depend on the lender and borrower’s creditworthiness.
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SoFi Private Student Loans Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.
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Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
A deck can turn your backyard into a dream destination. But the reality is, building one isn’t cheap.
A new 400-square-foot wood deck can set you back between $10,000 and $20,000 in 2025, according to HomeGuide, a home improvement website, while Angi put sthe average cost at $8,258. Project costs can vary based on where you live, the materials you use, the size of the deck, and other factors.
Whatever your deck plans entail, you’ll want to make sure you’re financially prepared. Here’s a closer look at the factors that can impact how much you could pay to have a professionally built deck added to your home.
Key Points
• The cost to build a deck in 2025 ranges from $10,000 to $20,000, depending on location, materials, and size.
• Labor typically accounts for up to 50% of the total project budget.
• Pressure-treated wood is the least expensive material, while redwood is the most costly.
• Additional costs include permits, potential increases in home insurance premiums, and property taxes.
• A deck project can be financed by a personal or home equity loan, home equity line of credit, or no-interest credit cards.
Get an Idea of Labor Costs
No matter what kind of deck you’re building, count on labor taking up a big chunk of the budget. Generally speaking, it’s around 38% to 50% of the overall project costs. (The rest of the budget typically goes toward covering the cost of materials and other smaller expenses.)
One way to get a rough idea of how much you’ll pay for labor is to use the rule of two. This method involves estimating the total cost of the project (labor plus materials) and dividing that amount by two. The result is the estimate of labor costs.
The rule of two also works the other way around. Say you get a quote from a contractor who will be building your deck. To get an idea of the total cost of the project, simply multiply the labor cost you’ve been quoted by two.
While this method can provide a solid starting point as you plan your budget, it doesn’t factor in any unexpected costs that may crop up as your deck is being built.
💡 Quick Tip: With home renovations, surprises are inevitable. Not so with SoFi home improvement loans. There are no fees required, and no surprises.
Consider the Decking Materials
Another important factor to consider is the material you want to use for your deck. More durable decking material will likely cost you more, but could save in the long run with minimal upkeep or less-expensive repairs. Here’s a look at the average cost of common materials, according to Angi:
• Pressure-treated wood: $2 to $5 per square foot
• Composite decking: $12 to $22 per square foot
• Bamboo: $3 to $10 per square foot
• Cedar: $3 to $7 per square foot
• Redwood: $5 to $35 per square foot
• Metal: $15 to $20 per square foot
Of course, price is just one factor. You’ll also want to think about the climate where you live. Do you get a lot of snow in the winter? Is it very humid in the summer? Be sure whatever decking material you choose can stand up to the environment.
Choose a Design That Fits Your Budget
After materials and labor, the actual design of a deck can influence the overall cost of the project. To help keep prices low, you may want to stick with a simple design, traditional, squared-off corners, or even a smaller deck.
One affordable option? A ground-level deck, which sits within 30 inches from the ground. Because it’s so low, this type of deck requires fewer materials and structural reinforcements. And you won’t need to add a railing or stairs, which can be additional savings.
Factor In Additional Costs
While labor, materials, and design are the major players in a construction budget, there are other costs you’ll want to consider.
Permits are one example. Most towns and cities require permits for additional structures like decks. Deck contractors are usually well-versed in this process, and most will include the price of permits in their quotes.
If you’re building the deck yourself — or your contractor won’t pull a permit — you’ll need to handle the red tape yourself. Start by calling your local building department and explaining the project to them. If a permit is required, they can explain how the process works and provide you with the correct application form.
It’s also a smart move to factor in any costs you may incur once the deck is built. For instance, the new addition could increase your home insurance premiums. (Your agent can explain what changes, if any, you’ll need to make to your policy.)
You may also be hit with a higher property tax bill, since the addition of a permanent fixture like a deck typically increases a home’s value. To get an estimate of the change, contact your local building and tax departments.
Comparison Shop
Construction is similar to plumbing or automotive repair in that if you aren’t an expert, it can be hard to gauge the price. Whether you’re hiring a contractor or a carpenter, it can help to ask for bids from a few local professionals to ensure you have the right person for the job — and your budget. Ask potential candidates to provide photos of their projects and names of previous clients you can call.
For a long-term investment like a deck, going with the cheapest option might not be the best strategy. While there are ways to potentially lower the cost of a new deck, be sure you’re not sacrificing quality for price. After all, this is something that you and your family will hopefully be using for years.
Ways to Pay For a New Deck
While a deck brings comfort and enjoyment, the cost of building one can be significant. Here are some common financing options to explore. Including home improvement loans and home equity loans.
With this type of loan, you borrow a lump sum from a lender, which you’ll pay back with interest. The money can be used for almost anything, including paying for a new deck. Personal loans are usually unsecured, which means they don’t require collateral. Instead, a lender will consider a borrower’s creditworthiness.
Most lenders offer a personal loan amount of $50,000, though some lenders offer lending up to $100,000. Repayment terms are usually two to seven years, and interest rates are typically fixed.
If you’ve built up equity in your home and have a one-time cash need, you may want to look into a fixed-rate home equity loan.
This loan type, which uses your home as collateral, is fairly straightforward: You receive a lump-sum payment from the lender, which you’ll repay over a period of time with a set interest rate. The term of these loans typically spans five to 15 years, and the amount you borrow must be repaid in full if you sell your home. If you’re unable to make the payments, you could risk losing your house.
Note that the closing costs may be similar to the cost of closing on a home mortgage. As you’re comparison shopping, be sure to ask about the lender’s closing costs so you can prepare your budget accordingly.
Home Equity Line of Credit (HELOC)
If your deck addition turns into an ongoing project, and you want some flexibility to pay as you go, then a home equity line of credit (HELOC) may be a good fit.
A HELOC is revolving debt, meaning that as you pay down the loan balance, you can borrow it again during the draw period. That’s when you can use, or draw, funds against the line of credit, typically 10 years. After that, you can no longer draw funds. (Another important time period to keep in mind? The repayment period, which is the amount of time you have to repay the loan in full.)
Note that unlike a fixed-rate home improvement loan, a HELOC’s interest rate is variable. This means it changes to reflect the current interest rate, which could cause your monthly loan payment amounts to vary.
No-Interest Credit Cards
With a no-interest, or 0% APR, credit card, you won’t be charged any interest on your purchases for a set period of time. Some cards also extend the temporary 0% APR to balance transfers.
A no-interest credit card comes with low borrowing costs, which could make it an attractive way to finance a new deck. But qualifying for one of these cards can be difficult. And when the promotional period ends, a potentially high APR will start accruing on the remaining balance.
The Takeaway
Adding a deck onto your home can be a great way to enjoy your backyard and add to the value of your home. When budgeting for the cost to build a deck, you’ll want to factor in labor, materials, design, and extra expenses like permits, insurance premiums, and property taxes. Enlisting the help of a reputable, licensed contractor or carpenter can help ensure you get the deck you want, at a price you can afford.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.
FAQ
How much should I budget for a deck?
A deck can cost anywhere from $2 to more than $75 per square foot, depending on size, material, complexity, and labor. The national average for a professionally constructed deck is about $7,320 or about $30 to $60 per square foot.
How much would a 20 x 20 foot deck cost to build?
A 20×20 deck (400 square feet) costs approximately $16,000 to $24,000 for professional installation. The price can vary significantly based on materials and labor.
Can you build a deck for $5,000?
It may be possible to build a deck for $5,000. If it’s a small deck, you use inexpensive materials, and/or you do some of the work yourself, you may be able to construct a deck for that price. The average deck currently costs slightly more than $8,000.
SoFi Loan Products
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Wedding bands are a symbol of a couple’s eternal love and commitment, but they’re also an added expense in the wedding budget. According to the wedding site The Knot, wedding bands can cost around $600 to $1,200 each. One way to potentially score a deal on your rings is by shopping during strategic times of the year.
Sales often occur in the weeks between Thanksgiving and Christmas. And you may find a bargain during September and October, when jewelers need to clear out old stock before the holidays.
But February, the month devoted to lovers, can also be a good time to shop for wedding bands. Here’s why.
Key Points
• February can be ideal for wedding band shopping due to Valentine’s Day proposals and promotions.
• Bridal fairs in February and March typically showcase new styles and can offer discounts.
• Set a budget and consider a wedding set for better value.
• Use no-interest credit cards, BNPL plans, and/or personal loans to manage costs.
• Start shopping early to allow time for customizations and sizing.
Reasons to Buy Your Wedding Bands in February
There are a few reasons why you may want to shop for wedding rings during the shortest month of the year.
It’s a Popular Time for Proposals
Many people pop the question between Christmas Eve and New Year’s Day, and Valentine’s Day continues to be one of the most popular holidays for couples to get engaged.
Jewelers know this, and they often prepare for the influx of business by rolling out promotions on engagement rings and wedding bands. Consider hitting the stores between New Year’s Day and Valentine’s Day, before the crowds show up. And if you can, shop during an off-peak time of day when the store is quieter. You may find it easier to try to negotiate a better price for your bands.
💡 Quick Tip: Need help covering the cost of a wedding, honeymoon, or new baby? A SoFi personal loan can help you fund major life events — without the high interest rates of credit cards.
Bridal Fairs Are Kicking Into Gear
Many bridal expos are held in February and March, offering couples a chance to see the latest wedding band styles without the sales pressure. Vendors are there to give tips as well as a good pitch, and some may offer limited-time, expo-related discounts.
Gather up information and coupons at the bridal fair, then give yourselves a day or two to regroup and possibly go make a purchase.
The Timing Works for a Summer Wedding
Jewelers typically recommend shopping for wedding bands at least three to four months before your wedding date — longer if you have your heart set on a one-of-a-kind design. That will give you time to look and look again, get the rings sized, and have any engraving or other customizing done.
For couples getting married in the summer — peak wedding season — this will mean starting the ring buying process in February.
How to Shop for Wedding Bands
No matter what time of year you shop for a wedding ring, it’s a good idea to do a little prep work before you hit the stores. Here are some things to consider doing ahead of time.
Set a Budget
You want bands you’ll love forever, but not at a price that will put you in debt for the rest of your lives. At the start, let your jeweler know what your budget is, and they can work with you to find rings within that range.
Consider a Wedding Set
If you haven’t settled on an engagement ring yet, you may want to look into purchasing a wedding set. This set includes your engagement ring and a matching wedding band. Buying both at the same time could save you money.
Shop Around
As with most major purchases, you’ll want to shop around for wedding bands. Visit different jewelers, including online shops, and don’t be afraid to ask questions about the pros and cons of different metals, gemstones, and designs.
Once you find the bands you want, try negotiating for a better price. You may be able to increase your chances of getting a deal by offering to pay all cash.
How to Pay For Your Wedding Bands
A wedding ring is usually cheaper than an engagement ring, but it can still take a significant bite out of your budget.
According to The Knot, the typical men’s wedding band costs around $600, while the average woman’s band runs closer to $1,200. Prices can vary widely based on a number of factors, including the metal type, overall design, and gemstones.
Here, a few common ways to finance wedding rings.
No-Interest Credit Cards
Larger jewelry stores usually offer some sort of in-store financing, including no-interest credit cards. You can also apply for one directly with a lender.
This option lets you buy the bands you want today, which is a major benefit. And it could make good financial sense if you’re able to pay off the balance before the promotional period ends. However, if you can’t, you’ll have to pay interest on whatever you owe. And that interest rate probably will be higher than other credit card or loan offers available to you.
Buy Now, Pay Later
Think of buy now, pay later (or BNPL) as a kind of installment payment plan. It allows you to purchase your wedding bands today and then spread out payments over a set number of weeks or months, often for zero or low interest. Klarna, Afterpay, and Affirm are all common examples of BNPL providers.
Usually, no minimum credit score is required for approval. Rather, providers will consider the amount available on the debit or credit card you’re using in the transaction, your history with that lender, and key details about the item you’re buying.
Also, a soft credit check is typically conducted to approve or reject your request, but it does not impact your credit score.
As with a no-interest credit card, if you pay off the BNPL plan as planned, you may not incur interest or fees. But if funds aren’t paid on time, or a longer-term plan is chosen, you could be hit with a high interest rate and/or late fees.
Personal Loan
You can get a personal loan from a bank, credit union, or online lender. Many, but not all, personal loans are unsecured, which means you won’t need to put up any collateral, such as a house or car. Instead, lenders will consider your creditworthiness.
Most personal loans are paid back within three to five years, and the interest rate tends to be higher if there is no collateral. The better your credit score is, the lower the interest rate and monthly payment will be. However, the lower the payment, the longer it might take you to pay off the loan.
Generally speaking, once you’re approved for a wedding loan, you can receive funds within days. In some cases, you may be able to get the money within a day or two. This quick influx of cash can come in handy if you’re planning to haggle for a better price on the band.
Wedding bands currently cost on average between $600 and $1,200, but you may get a better deal by shopping in February and other sale seasons. Be sure to shop around, and when you find the ring you want, don’t be afraid to try haggling. In terms of financing your purchase, options include savings, no-interest credit cards, and personal loans.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.
FAQ
What is the best time of year to buy a wedding ring?
It can be wise to buy a wedding ring six to eight months before the ceremony to allow time for sizing, engraving, and other types of customization. That said, there may be sales at certain times of year to help make wedding rings more affordable. February, since it includes Valentine’s Day, can be a good month to shop for wedding bands.
What is the three-month rule for wedding rings?
The three-month rule says that an engagement ring should cost the equivalent of three months’ worth of salary. This concept was developed as a marketing tactic almost a hundred years ago.
How much should you spend on an engagement ring?
How much you spend on an engagement ring (or if you buy one at all) is a very personal decision. A long-standing guideline is to pay around three months’ worth of salary, but that was developed as part of a marketing program, so it’s really up to each couple to decide what amount they feel comfortable with.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
When it comes to your money, the more you know, the better equipped you are to make informed financial decisions. One piece of your overall financial picture that you may want to understand is how much you’re “worth.” This information can help you understand where you are with your finances now and what you need to do to reach your goals for the future.
Before we look at a net worth growth calculator table that shows you how you compare against other people your age, let’s dive a bit deeper into what net worth is and why it’s important.
• A net worth calculator helps determine your financial health by calculating your assets and liabilities.
• It provides insights into your overall financial picture and helps track progress over time.
• Factors such as age, income, and debt impact your net worth.
• Regularly updating and reviewing your net worth can help with financial planning and goal setting.
• Use the calculator to assess your financial situation and make informed decisions about saving and investing.
What Is Net Worth?
Net worth is simply a total of all your assets minus any debts you have.
Those assets can include cash, real estate, intellectual property, and other items like jewelry, stocks, insurance policies, and bonds. The cash may come from a job you have or from unearned income, such as your Social Security payment
Having multiple assets does not necessarily mean you have a high net worth, particularly if you also carry significant debt. For example, you may have a million-dollar mansion, but if you have debts of $500,000, your net worth dwindles rapidly.
💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.
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How Does a Net Worth Calculator Work?
There are many personal net worth calculators available online, though you don’t need one to calculate your net worth. Just take the total amount of all your assets and subtract the total amount of your liabilities:
Net Worth = Assets – Liabilities
Some calculators will also factor in future growth so you can understand what your net worth will be in the future, as the value of your assets grows.
As you can see, it’s fairly easy to calculate your net worth, though it may take time to gather the values of all your assets, such as the current value of a piece of high-end jewelry. But once you do, you can add up all your assets and then subtract your liabilities to calculate your net worth.
What Is the Average American Net Worth?
Knowing your own net worth is one thing, but where does it stand against other people in your age bracket? Generally, people see an increase in their net worth the older they get, and it can be helpful to use a net worth percentile calculator by age to see where you stand.
Here’s the average net worth by different age groups, according to the most recent data available from the Federal Reserve.
Age
Average Net Worth
Median Net Worth
Under 35
$183,380
$39,040
35-44
$548,070
$135,300
45-54
$971,270
$246,700
55-64
$1,564,070
$364,270
65-74
$1,780,720
$410,000
75+
$1,620,100
$334,700
Source: Federal Reserve’s 2022 Survey of Consumer Finances
Why Is Net Worth Important?
Calculating your net worth is smart because it can help you understand where you’re strong financially (maybe you have little debt) and where you’re weak (maybe you’ve overextended your credit to buy your home).
It may also help you make plans for the future. For example, if your net worth is high, you might explore strategies for reducing taxable income, such as contributing more to a tax-deductible retirement account. And if your net worth isn’t where you’d like it, you can take steps to improve it.
💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.
How to Increase Your Net Worth
If you’ve used a liquid net worth calculator, or compared your net worth to the table above and don’t feel like your numbers are as high as you’d like them to be, you can do a few things to increase your net worth.
If your debt levels are high, you can increase your net worth by decreasing that debt. Get a plan for paying off credit cards, student loans, car loans, and home mortgages. Consider increasing the amount you pay on each slightly to shorten your repayment period and decrease the amount of interest you pay on these loans and credit cards.
Creating a budget is one way to keep tabs on your finances as you’re paying off debt. A money tracker app can help make the job easier.
If you don’t have an abnormally high amount of debt but want to increase your assets, you might explore making more money. If you’re still in the workforce and have the ability to make a career change, you might consider cultivating potential high-income skills that could help you command a higher salary.
You may not be able to match the likes of Jay-Z and Beyoncé when it comes to net worth, but knowing yours can help you make smart financial decisions for the future. To figure out your net worth, you can subtract the total amount of your liabilities from the total amount of your assets. You can also use a personal net worth calculator; some will even factor in future growth.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
How do I calculate your net worth?
Net worth can be calculated by subtracting all your liabilities from your assets. In other words, subtract everything you owe (debts, loans, credit card debts) from everything you have (cash, property, real estate, jewelry, stocks).
What is a good net worth by age?
A “good” net worth depends on your financial goals and age. For example, the average net worth for 35-44 year-olds is $548,070. Yours may be higher or lower than this.
What net worth is considered rich?
According to a 2025 survey conducted by Charles Schwab, Americans need an average net worth of at least $2.3 million to feel wealthy. However, that amount varies based on where you live.
Photo credit: iStock/Kanatip Chulsomlee
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This content is provided for informational and educational purposes only and should not be construed as financial advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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