Loan Calculator

Calculate your monthly loan repayment, total interest, and full amortisation schedule for any loan.

Rates as of Q2 2025 (example)

£
%
0.1 30
years
1 30
£
Result
Total interest
Total cost of loan

Payment breakdown

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Amortization schedule

Period Date Payment Principal Interest Balance

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For educational purposes only. Consult a financial advisor.

What is a Loan Calculator?

A loan calculator estimates your monthly repayment, total interest, and overall cost for any fixed-term loan based on the amount borrowed, the interest rate, and the term. It's a general-purpose tool that works for personal loans, debt consolidation loans, or any other fixed-rate loan with regular monthly repayments — and shows how extra monthly payments could reduce your term and total interest.

How to Use This Loan Calculator

  1. Enter the loan amount you're borrowing.
  2. Enter the interest rate — the default is an example only, so use the actual rate (often shown as an APR) from a loan offer or quote.
  3. Enter the loan term in years.
  4. Optionally add an extra monthly payment to see how overpaying could shorten your term and reduce total interest.
  5. Review your monthly repayment, total interest, total cost, and full amortisation schedule.

How is a Loan Payment Calculated?

The monthly repayment is calculated using the standard amortising loan formula, which spreads the loan amount plus interest into equal monthly payments over the term — each payment covers the interest due on the remaining balance plus a portion of the principal.

Formula: Monthly Payment = [Loan Amount × r × (1+r)n] / [(1+r)n − 1], where r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments (years × 12).

Example: For a £10,000 loan at an 8% interest rate (example rate — enter your actual rate) over 5 years, the monthly repayment is roughly £203, with total interest of about £2,160 over the term — meaning the total amount repaid is roughly £12,160. (Note: all figures in this example are for illustration purposes only and do not represent a loan offer.)

Personal Loans in the UK

Personal loans in the UK are typically advertised with a "representative APR" — the rate that at least 51% of successful applicants will receive, meaning the rate actually offered to you could be higher or lower depending on your credit profile and the lender's assessment. Loan rates and terms vary significantly across lenders, and larger loan amounts (often in specific bands, such as £7,500–£15,000) sometimes qualify for lower rates than smaller amounts. When comparing loans, the total amount repayable (shown by this calculator) is often more useful than the monthly payment alone, especially when comparing loans with different terms — a longer term reduces the monthly payment but usually increases the total interest paid.

Tips for Using This Loan Calculator

  • Compare the representative APR from multiple lenders, but remember the rate you're actually offered could differ based on your credit history — checking your eligibility with a "soft search" (which doesn't affect your credit score) before applying can help.
  • Use the total interest and total cost figures to compare loans with different terms on a like-for-like basis, not just the monthly payment.
  • If your loan allows penalty-free overpayments, use the extra payment field to see how even modest additional payments could reduce your total interest.
  • Check for any arrangement fees, which some lenders add to the loan amount or charge separately — these aren't included in this calculator's interest-only estimate.

Frequently Asked Questions

What is a representative APR?

A representative APR is the interest rate that at least 51% of successful applicants for a loan will receive. The actual rate offered to you could be higher (or lower) depending on your credit history and the lender's assessment of your application.

Is the 8% interest rate accurate for my loan?

No — the default is an example only. Personal loan rates vary by lender, loan amount, term, and your credit profile. Enter the actual rate or representative APR from a loan offer for an accurate result.

Why does a longer loan term reduce my monthly payment but increase total interest?

A longer term spreads the loan amount over more monthly payments, reducing each individual payment. However, interest accrues on the outstanding balance for longer, so the total interest paid over the full term is generally higher than with a shorter term at the same rate.

Does this calculator include arrangement or other fees?

No. This calculator estimates interest costs based on the loan amount, rate, and term only. Some lenders charge arrangement fees, which may be added to the loan amount (and therefore accrue interest) or charged separately — check your loan agreement for any such fees.

Can I use this calculator for a debt consolidation loan?

Yes — this calculator works for any fixed-rate loan with regular monthly repayments, including debt consolidation loans. For a calculator that compares your current debts to a consolidation loan side-by-side, use the Debt Consolidation Calculator.

How do extra monthly payments affect my loan?

Extra payments go directly toward reducing the principal balance, which reduces the interest charged in future months — this can significantly shorten your loan term and reduce total interest, though some lenders may charge a fee for overpayments above a certain limit, so check your loan terms first.

Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute a loan offer or financial advice. The default interest rate is a sample value and does not reflect rates currently available from any specific lender. Loan rates, fees, and terms vary by lender and depend on your individual circumstances. Always obtain a personalised quote from a lender before making any borrowing decisions.