Loan Calculator
Calculate monthly repayments, total cost, and interest on any personal loan.
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Personal Loan Calculator
Cost per £1,000 borrowed
At 6.9% over 48 months = £1147.19 total per £1,000
Monthly Payment
£239
Total Repayable
£11,472
Total Interest
£1,472
Interest as % of Loan
14.7%
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Rate Comparison
Rate A, 6.9%
Monthly
£239
Total Repayable
£11,472
Total Interest
£1,472
Rate B, 9.9%
Monthly
£253
Total Repayable
£12,151
Total Interest
£2,151
Rate B costs £14/month more than Rate A
That's £679 extra over the full term
Total Cost Breakdown
- Principal
- Interest
£10,000
£1,472
Balance Over Time
- Principal Paid
- Interest Paid
Calculator Methodology
Uses standard amortisation formula based on your loan amount, APR, and term. UK personal loan rates typically range from 3–30% APR. Results are for illustrative purposes only and do not constitute financial advice. Always compare lenders before committing. Last verified: June 2026.
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Understanding APR on Personal Loans
APR (Annual Percentage Rate) is the true yearly cost of borrowing, combining the interest rate with any mandatory fees. It's the figure you should compare between lenders, not the headline interest rate alone, since two loans with the same interest rate can have very different APRs once fees are included.
UK lenders must advertise a "representative APR", the rate at least 51% of successful applicants actually receive. Your personal rate depends on your credit score, income, and existing debt, so the rate you're offered can differ from the advertised one.
Typical UK Personal Loan Rates by Amount
| Loan Amount | Typical APR Range |
|---|---|
| £1,000 – £5,000 | 9% – 30% |
| £5,000 – £7,500 | 6% – 15% |
| £7,500 – £15,000 | 3% – 8% |
| £15,000 – £25,000 | 5% – 12% |
Rates typically improve between £7,500–£15,000 as lenders offer their most competitive "sweet spot" pricing at this tier.
Should You Pay Off a Loan Early?
Settling a loan early usually saves interest, but check for an early repayment charge (ERC) first, UK lenders can charge up to 58 days' (roughly two months') interest for early settlement under the Consumer Credit Act. Request a settlement figure from your lender before paying off the balance to see if it's worthwhile compared to continuing scheduled payments.
Worked Example: Borrowing £10,000 at 7%
Over five years (60 months) at 7%, the monthly payment is about £198. You repay roughly £11,880 in total, so the loan costs you about £1,880 in interest.
Shorten the term to three years (36 months) at the same rate and the payment rises to about £309 a month. The total repaid falls to roughly £11,120, which saves around £760 in interest. The trade-off is £111 more to find every month, so choose the shortest term you can comfortably afford rather than the shortest term possible.
Frequently Asked Questions
Is a longer loan term better?
It lowers your monthly payment but increases the total interest you pay. A longer term can make sense if your budget is tight, but you can usually overpay later to reduce the cost.
Can I overpay on a personal loan?
Most lenders allow overpayments, though some treat them as early settlement and may apply a charge. Ask for the terms before sending extra money.
Does applying for a loan affect my credit score?
A soft-search eligibility check does not. A full application leaves a hard search on your credit file, so avoid making several in a short space of time.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the money. APR adds mandatory fees and spreads the cost over a year, which makes it the better figure for comparing lenders.
⚠️ Important Disclaimer
This calculator uses a standard amortisation formula and is for illustrative purposes only. It does not constitute financial advice. Loan approval and the rate you're offered are subject to status and individual lender assessment. Always compare representative APRs across multiple lenders before applying.
Frequently Asked Questions
What is APR?
APR (Annual Percentage Rate) includes the interest rate plus any fees, giving you the true annual cost of the loan.
What is a good loan rate?
Personal loan rates in the UK typically range from 3% to 30% APR. The best rates (under 7%) are usually for amounts over £7,500 with excellent credit.
Should I pay off my loan early?
Often yes, but check for early repayment charges (ERCs). Most lenders charge up to 2 months' interest for early settlement.
Key Terms Explained
Plain-English definitions of the financial terms used in this calculator.
- APR (Annual Percentage Rate)
- The yearly cost of borrowing, including interest and standard fees, expressed as a percentage. APR lets you compare loans, credit cards and mortgages on a like-for-like basis, a lower APR means cheaper borrowing.
- Principal
- The original amount borrowed or invested, before any interest. On a repayment mortgage or loan, each monthly payment covers interest plus a slice of the principal until the balance reaches zero.
- Amortisation
- The gradual repayment of a loan through fixed regular payments. Early payments are mostly interest; later payments are mostly principal. An amortisation schedule shows this split month by month.
- Interest Rate
- The percentage charged for borrowing or paid on savings, usually per year. The Bank of England base rate influences most UK mortgage, loan and savings rates.
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Not Financial Advice: This calculator is for informational and educational purposes only. Results are estimates and do not constitute financial advice, recommendations, or regulated advice. We are not authorised or regulated by the Financial Conduct Authority (FCA). Always consult a qualified financial adviser for personalised advice. Tax treatment depends on your individual circumstances and may change. Tax laws and rates may change. Past performance does not guarantee future results.
