Loan Repayment Calculator
Monthly payments, total interest and the real cost of borrowing on a personal loan.
About your loan
What you'll repay
- Total paid
- £14,911
- Total interest
- £2,911
- Cost of borrowing
- 24.3%
- Amount borrowed80%
- Interest20%
- Remaining balance
Estimates only, based on published HMRC rates. Not financial advice.
The monthly payment is the number people compare, but it's the least informative one. Total interest and APR tell you what a loan actually costs.
How to use it
- 1Enter the amount you want to borrow.
- 2Set the APR and the term in years.
- 3Compare the monthly payment against the total interest before committing.
Reading APR properly
APR is the annual cost of borrowing including compulsory fees, which makes it the only fair way to compare two loans. A lower headline interest rate with an arrangement fee can easily be more expensive than a higher rate without one.
Watch for representative APR: lenders only have to offer the advertised rate to 51% of successful applicants. The rate you're actually offered after a credit check can be higher, and it's the only rate that matters to your budget.
Term length is a trade
Lengthening the term reduces the monthly payment and increases total interest, because you're borrowing the money for longer. Borrowing £12,000 over three years versus seven can double the interest paid while making the monthly figure look far more comfortable.
Choose the shortest term whose payment you can sustain in a bad month, not a good one. A missed payment costs more in fees and credit damage than the interest saved by an aggressive term.
Before you borrow
Check whether the lender charges an early repayment fee, under the Consumer Credit Act you can settle a regulated loan early, but up to 58 days of interest may be charged. Check whether payment protection is being bundled in and whether you need it. And use eligibility checkers that perform a soft search, since multiple hard credit searches in a short window can affect your score.
If you're borrowing to clear existing debt, compare the total cost of the new loan against what's left on the old one. Consolidation lowers monthly payments most often by extending the term, which frequently increases the total repaid.
Common questions
- What's the difference between APR and interest rate?
- The interest rate is the cost of the borrowed money alone. APR includes compulsory fees as well, so it reflects the true annual cost and is the right figure for comparing offers.
- Does a longer loan term cost more?
- Yes. The monthly payment falls but you pay interest for longer, so the total repaid rises, often substantially.
- Can I pay a personal loan off early?
- Regulated loans can always be settled early, but the lender may charge up to 58 days' interest. Ask for a settlement figure and compare it with the remaining payments.
- What is representative APR?
- The advertised rate, which only has to be offered to 51% of accepted applicants. Your personal rate depends on your credit profile and may be higher.
- Will applying affect my credit score?
- A full application leaves a hard search on your file. Use soft-search eligibility checkers to compare options first, and avoid several hard searches in quick succession.