Loan repayment calculator
Enter what you are borrowing, the rate and the term, and see the monthly payment alongside what the borrowing costs in total.
How this is calculated
This is the standard amortisation calculation. Each payment covers the interest accrued that month first, and whatever is left reduces the balance.
Because the balance falls over time, early payments are mostly interest and later payments are mostly capital. The monthly figure stays the same throughout.
Total interest is simply every payment added up, minus what you borrowed.
APR includes compulsory fees as well as interest, so it is the figure to compare between lenders rather than the headline rate.
Rates used · 2026/27
| Typical personal loan APR | 6% to 15% |
| Common terms | 1 to 7 years |
| Representative APR | offered to at least 51% of accepted applicants |
| Early repayment charge | often up to 2 months interest, check your agreement |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
Borrowing £10,000 over 5 years at 7.9% costs £202.29 a month. Across 60 payments that is £12,137, so £2,137 of interest on top of what you borrowed.
Common questions
Will I definitely get the advertised rate?
Not necessarily. Lenders only have to offer the representative APR to 51% of accepted applicants, so the rate you are actually offered may be higher.
Does a longer term save me money?
No. It lowers the monthly payment but adds months of interest, so the total paid rises. The monthly figure gets easier while the loan gets more expensive.
Can I pay it off early?
Usually yes, though many agreements allow an early repayment charge of up to two months interest. Check the agreement before assuming an overpayment saves the full amount.
Is this the same as car finance?
The maths is the same for hire purchase. PCP is different, because part of the value is deferred to a balloon payment at the end.