Loan Repayment Calculator
Work out the monthly cost of any UK personal loan — debt consolidation, home improvement, car finance, or wedding. Enter the amount, the representative APR, and the term to see your monthly payment alongside the total interest charged over the life of the loan. Useful for comparing offers from banks, credit unions, and online lenders.
How is this calculated?
Repayments use the standard annuity formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the loan amount, r is the monthly rate (APR ÷ 12), and n is the number of monthly payments. The model assumes the rate is fixed for the full term, which matches the structure of most UK unsecured personal loans. Variable-rate or revolving facilities such as overdrafts and credit cards behave differently and are better modelled with the credit card payoff calculator.
Frequently Asked Questions
What is APR and how is it different from the interest rate?
APR (Annual Percentage Rate) bundles the interest rate and any compulsory fees into a single annualised figure, so two loans can be compared like-for-like. UK lenders are required to quote a representative APR that at least 51% of accepted borrowers receive — your personal rate may be higher depending on your credit profile.
Are there penalties for paying off a loan early?
Under the Consumer Credit Act, lenders can charge up to two months' interest as a settlement fee. For most loans, settling early still saves money overall because you avoid all the future interest. Always request a settlement figure in writing before paying off.
What APR can I expect in 2026?
Personal loan APRs in 2026 typically range from around 6%–7% for prime borrowers up to 25%+ for thin or impaired credit files. Loan size matters: rates are usually keenest in the £7,500–£15,000 band where lenders compete hardest. Smaller loans often carry higher APRs.
Should I take a longer term to lower the monthly payment?
It will cut your monthly cost but raise the total interest paid, sometimes dramatically. A £10,000 loan at 8% over 3 years costs about £1,281 in interest; over 7 years that climbs to about £3,131. Stretch the term only if you genuinely need the cash flow.
Last updated: May 2026 · Rates sourced from HMRC