Work out monthly repayments, total interest and a yearly schedule for any loan.
| Year | Paid | Interest | Balance |
|---|
Uses standard monthly amortisation with a monthly rate of APR ÷ 12 as an approximation. Lenders may round payments and fees differently, so your quote is the final word.
Before you sign up for a personal loan, it pays to know exactly what it will cost. This loan calculator UK shows your monthly repayment, the total you will pay back and how much of that is interest, using the standard amortising loan method that most UK lenders follow, plus a year by year schedule so you can see the balance fall.
Quick answer: A loan calculator UK works out the fixed monthly payment that clears a loan, interest included, by the end of the term. Borrowing £10,000 over 5 years at 6.9% APR costs £197.54 a month and £1,852.43 of interest. A longer term lowers the monthly payment but increases the total interest you pay.
In This Guide
What Is a Loan Repayment Calculator?
A loan repayment calculator works out the fixed monthly payment that clears a loan, interest included, by the end of the term. Each payment covers that month's interest first, and the rest reduces the balance. Early payments are mostly interest, and later ones are mostly capital.
The formula is payment = P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r is the monthly rate and n is the number of months. This calculator uses APR ÷ 12 as the monthly rate, which is a close approximation. Borrowing £10,000 over 5 years at 6.9% APR gives £197.54 a month and £1,852.43 of interest.
How Do You Use the Loan Calculator UK?
Step 1: Enter the Loan Amount
Type how much you want to borrow, and borrow only what you need, as every extra pound adds interest over the whole term. Type how much you want to borrow. Borrow only what you need, as every extra pound adds interest over the whole term.
Step 2: Choose the Term
Enter the term in years or tap a quick option. A longer term lowers the monthly payment but increases the total interest, and the tip under the results shows how much a shorter term would save you.
Step 3: Add the APR
Use the APR from your personalised quote rather than the advertised representative rate, which only some applicants receive. If you are financing a car, the PCP calculator compares a balloon deal with a standard loan on the same terms, so you can see which works out cheaper.
Step 4: Read Your Results
Check the monthly repayment, the total repayable and the interest, then scan the yearly schedule. If you are weighing a loan against paying more off your home, the mortgage overpayment calculator shows the interest you could save there instead, which helps you decide where spare money works hardest.
What Are Typical Loan Repayments in the UK?
| Loan | Term | APR | Monthly | Total interest |
|---|---|---|---|---|
| £5,000 | 3 years | 8.9% | £158.77 | £715.58 |
| £10,000 | 4 years | 6.9% | £239.00 | £1,471.94 |
| £10,000 | 5 years | 6.9% | £197.54 | £1,852.43 |
| £15,000 | 5 years | 6.4% | £292.79 | £2,567.41 |
| £25,000 | 7 years | 7.5% | £383.46 | £7,210.38 |
As an example, borrowing £10,000 over 5 years at 6.9% APR costs £197.54 a month and £1,852.43 in total interest, while £5,000 over 3 years at 8.9% costs £158.77 a month. Rates in the table are examples, not offers, so always compare real quotes. The free MoneyHelper everyday money guides explain how to compare loans and check eligibility without harming your credit score. Look out for arrangement fees and early repayment charges, which are not included here.
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How we checked this tool: the Tools Veria Editorial Team built this tool by hand, checked it against the official rules or published standards where they apply, and tested it against worked examples. Results are estimates for planning, not personal financial or tax advice. Read our editorial policy and disclaimer, or report an error.
Frequently Asked Questions
How are monthly loan repayments calculated?
The payment is P × r ÷ (1 − (1 + r) to the power of −n), where P is the loan, r the monthly rate and n the number of months. £10,000 over 5 years at 6.9% APR is about £197.54 a month.
What is the difference between APR and interest rate?
APR includes the interest rate plus any compulsory fees, expressed as a yearly rate. It is the best figure for comparing loans.
Is a longer loan term cheaper?
No. A longer term lowers the monthly payment but you pay interest for longer, so the total cost rises.
Can I pay off a loan early in the UK?
Yes. You have a legal right to repay a personal loan early. The lender can charge no more than 1% of the amount repaid early, or 0.5% if less than a year remains, and there is often no charge if you repay £8,000 or less in a 12 month period.
What is a representative APR?
It is the rate at least 51% of successful applicants receive. You may be offered a higher rate depending on your credit history.
Does this calculator include fees?
No. It shows repayments based on the amount and APR only. Add any arrangement fee to the loan amount if it is added to the loan.