Calculate your monthly personal loan repayment, total interest, and amortisation schedule, including arrangement fees.
Rates as of Q2 2025 (example)
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A personal loan calculator estimates your monthly repayment, total interest, and the net amount you'd actually receive after any arrangement fee, for an unsecured personal loan. It also produces an amortisation schedule showing how each payment is split between interest and principal over the life of the loan.
The monthly payment is calculated using the standard amortising loan formula, based on the loan amount, interest rate, and term. If an arrangement fee applies, it's deducted from the loan amount to give your net proceeds — but you still repay the full loan amount (plus interest) over the term, so the fee effectively increases your overall cost without changing your monthly payment.
Formula: Monthly Payment = [Loan Amount × r × (1+r)n] / [(1+r)n − 1], where r is the monthly interest rate and n is the number of months. Arrangement Fee = Loan Amount × (Fee % ÷ 100). Net Amount Received = Loan Amount − Arrangement Fee. Total Cost = Loan Amount + Total Interest + Arrangement Fee.
Example: A £10,000 personal loan at a 9.9% interest rate (example rate — enter the representative APR or actual rate from a quote) over 36 months, with no arrangement fee, gives a monthly payment of roughly £322, total interest of about £1,600, and a total cost of around £11,600. (Note: all figures in this example are for illustration purposes only and do not represent a loan offer.)
UK personal loans are typically unsecured, meaning they're not tied to an asset like your home or car — lenders base approval and rates primarily on your credit history and affordability. Lenders are required to advertise a "representative APR" (Annual Percentage Rate), which must be the rate offered to at least 51% of successful applicants — but the rate you're actually offered can be higher or lower depending on your individual credit profile, a practice sometimes called "personalised pricing." Some loans charge an arrangement or product fee, which may be deducted from the amount you receive (reducing your net proceeds) or added to the loan balance (increasing what you repay) — check which applies, as this affects the true cost of borrowing. Personal loans are commonly used for debt consolidation, home improvements, or large purchases — if consolidating existing debts, compare the total cost of the new loan (including any fees) against your existing debts to make sure it's actually a saving.
A representative APR is the interest rate (including most fees) that a lender must offer to at least 51% of successful applicants. It's useful for comparing loans, but your actual rate may be higher or lower depending on your credit profile — many lenders offer a "soft search" quote to show your likely personal rate.
If an arrangement fee is deducted from your loan proceeds, you receive less than the full loan amount but still repay the full amount plus interest — increasing your effective cost of borrowing. If instead the fee is added to your loan balance, your monthly payment and total interest both increase slightly. Either way, factor the fee into your comparison of different loan offers.
No — the default is an example only. Personal loan rates vary significantly by lender, loan amount, term, and your individual credit profile. Use a representative APR or, ideally, a personalised quote (via a soft-search eligibility checker) for an accurate estimate.
Yes, generally. UK consumer credit regulations typically entitle borrowers to repay a personal loan early, in part or in full, and to receive a rebate of some of the interest as a result — though a small early settlement charge may apply in some cases. Check your loan agreement or contact your lender for specifics.
It can be, if the new loan's total cost (including any fees) is genuinely lower than continuing with your existing debts, and if it helps you manage repayments more easily with a single fixed monthly payment. However, extending the repayment term can sometimes mean paying more interest overall even at a lower rate — compare total costs carefully, and consider seeking free debt advice if you're struggling.
An unsecured personal loan (the type this calculator models) isn't tied to any specific asset — if you don't repay, the lender can't automatically claim a particular asset, though it can still pursue the debt through other means. A secured loan, such as a second charge mortgage, is tied to an asset (typically your home), putting that asset at risk if you don't keep up repayments.
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 — your actual rate depends on your individual circumstances and credit profile. Always obtain a personalised quote from a lender and consult a qualified financial adviser or a free debt advice service (such as StepChange or Citizens Advice) if you're concerned about existing debts.