Autumn Budget 2026: what changes for your money, and when
Higher tax on rental and savings income, a bigger trading allowance, a smaller BADR limit and a new minimum wage. What changes, and when.
A personal loan is paid back in equal monthly payments. Each payment covers that month's interest and pays off some of what you borrowed, so the interest part shrinks and the repayment part grows as the loan goes on. Three things set the payment: how much you borrow, the APR, and the term.
Borrowing £10,000 over 5 years at 7.9% APR costs £202.29 a month. Over 60 payments you pay back £12,137, so £2,137 is interest.
Monthly repayments at a glance
At an example APR of 7.9%:
| Amount borrowed | 3 years | 5 years | 7 years |
|---|---|---|---|
| £5,000 | £156.45 | £101.14 | £77.68 |
| £10,000 | £312.90 | £202.29 | £155.36 |
| £15,000 | £469.35 | £303.43 | £233.05 |
| £20,000 | £625.81 | £404.57 | £310.73 |
A longer term costs more overall
Spreading £10,000 over more years lowers the payment but adds interest, because you owe the money for longer.
| £10,000 at 7.9% | Monthly payment | Total interest |
|---|---|---|
| 3 years | £312.90 | £1,264 |
| 5 years | £202.29 | £2,137 |
| 7 years | £155.36 | £3,051 |
What the APR does
The rate you are offered depends mainly on your credit record and the amount. On the same £10,000 over 5 years:
| APR | Monthly payment | Total interest |
|---|---|---|
| 5.9% | £192.86 | £1,572 |
| 7.9% | £202.29 | £2,137 |
| 9.9% | £211.98 | £2,719 |
| 14.9% | £237.37 | £4,242 |
| 19.9% | £264.38 | £5,863 |
Advertised rates are representative: a lender only has to give that rate to most of the people it accepts, so you may be offered more. Compare using the rate you are actually offered. Our figures divide the APR by 12 to get a monthly rate, which is the usual way calculators do it; a lender's exact figures can differ by a few pence.
Credit cards work differently
A card has no fixed term. You choose what to pay each month, and the less you pay, the longer it takes and the more interest you pay. On a £3,000 balance at 24.9% APR, with no new spending:
| Paying each month | Cleared in | Interest paid |
|---|---|---|
| £75 | 7 years 3 months | £3,471 |
| £100 | 4 years | £1,744 |
| £150 | 2 years 3 months | £916 |
| £200 | 1 year 7 months | £631 |
Going from £75 to £100 a month saves over £1,700 and more than three years. The credit card payoff calculator shows this for your own balance, and if you have several debts, the debt snowball calculator shows the order to clear them in.
Work out your own loan
Put the amount, APR and term into the loan repayment calculator to see the monthly payment, the total you will pay back and how much of it is interest.
This is general information, not financial or tax advice.
It explains published rules and figures. Your own position depends on your full circumstances,
so speak to a qualified adviser before acting on it.