UK Loan Calculator
Loan type
Monthly Payment
£308.31
Total Interest
£1,099.30
Total Cost
£11,099.30
Repayment Schedule
| Month | Principal | Interest | Balance |
|---|---|---|---|
| 1 | £250.81 | £57.50 | £9,749.19 |
| 2 | £252.26 | £56.06 | £9,496.93 |
| 3 | £253.71 | £54.61 | £9,243.22 |
| 4 | £255.17 | £53.15 | £8,988.06 |
| 5 | £256.63 | £51.68 | £8,731.43 |
| 6 | £258.11 | £50.21 | £8,473.32 |
| 7 | £259.59 | £48.72 | £8,213.72 |
| 8 | £261.09 | £47.23 | £7,952.64 |
| 9 | £262.59 | £45.73 | £7,690.05 |
| 10 | £264.10 | £44.22 | £7,425.96 |
| 11 | £265.61 | £42.70 | £7,160.34 |
| 12 | £267.14 | £41.17 | £6,893.20 |
| 13 | £268.68 | £39.64 | £6,624.52 |
| 14 | £270.22 | £38.09 | £6,354.30 |
| 15 | £271.78 | £36.54 | £6,082.52 |
| 16 | £273.34 | £34.97 | £5,809.18 |
| 17 | £274.91 | £33.40 | £5,534.27 |
| 18 | £276.49 | £31.82 | £5,257.78 |
| 19 | £278.08 | £30.23 | £4,979.70 |
| 20 | £279.68 | £28.63 | £4,700.02 |
| 21 | £281.29 | £27.03 | £4,418.73 |
| 22 | £282.91 | £25.41 | £4,135.82 |
| 23 | £284.53 | £23.78 | £3,851.29 |
| 24 | £286.17 | £22.14 | £3,565.12 |
Prepayment / Part-payment
Compare scenarios
Scenario A | Scenario B | |
|---|---|---|
| Loan Amount | ||
| Annual Interest Rate (APR) | ||
| Loan Term (yrs) | ||
| Monthly Payment | £308.31 | £312.90 |
| Total Interest | £1,099.30 | £1,264.49 |
| Total Cost | £11,099.30Best value | £11,264.49 |
UK Loan Calculator
A loan calculator helps you work out exactly how much you'll pay each month and how much the loan will cost in total. In the UK, all consumer loan rates must be quoted as an Annual Percentage Rate (APR), which includes all mandatory charges — not just the interest. This means you can compare offers from different lenders on a like-for-like basis.
Enter your loan amount, the APR offered by your lender, and the repayment term. The calculator instantly shows your monthly payment, total interest payable, and a full month-by-month repayment schedule.
How Monthly Loan Repayments Are Calculated
UK personal loans use the reducing-balance (amortised) method. Each monthly payment covers the interest on the remaining balance plus a portion of the principal. In the early months, a larger share goes to interest; by the final months, almost all of each payment reduces the principal.
The formula is:
Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1]
Where P = loan amount, r = monthly interest rate (APR ÷ 12 ÷ 100), and n = total number of monthly payments.
Worked Example
You borrow £10,000 at 6.9% APR over 3 years (36 months).
- Monthly payment: £308.77
- Total repaid: £11,115.72
- Total interest: £1,115.72
If you make an extra £50 per month, you'd pay off the loan 4 months early and save approximately £143 in interest.
Typical Personal Loan Rates in the UK (2024–2025)
| Loan Type | Typical APR Range |
|---|---|
| Personal loan (£7,500–£15,000) | 5.9% – 7.9% |
| Personal loan (under £3,000) | 12% – 39.9% |
| Car finance (PCP/HP) | 7% – 12% |
| Home improvement loan | 6% – 14% |
The representative APR advertised by a lender must be offered to at least 51% of successful applicants. Your actual rate will depend on your credit score, income, and the loan amount.
Fees, Charges & the True Cost of Borrowing
UK lenders may add an arrangement fee to some products, but for regulated personal loans these must be included in the advertised APR. Brokers must disclose any fee before you apply. Because APR rolls in all compulsory charges, comparing two loans on APR alone is the safest way to judge cost.
Early Repayment Charges
Under the Consumer Credit Act 1974 you can settle a personal loan early at any time. Lenders may charge interest of up to 58 days (roughly one to two months) on the amount repaid early. Many providers charge nothing — always check the early settlement figure before overpaying.
Payment Protection & Insurance
Optional credit insurance (income or payment protection) can be added to a loan but is never compulsory. Following the PPI mis-selling scandal, the FCA requires clear, separate pricing. Decline cover you do not need — it materially raises the total cost.
Recent Rate Context (2025–2026)
UK loan pricing tracks the Bank of England base rate. After the 2023 peak, rates have eased gradually through 2025. Headline personal-loan APRs for £7,500–£15,000 remain competitive, while small loans stay expensive. Check the current base rate at the Bank of England (bankofengland.co.uk) before fixing a rate.
What is APR and how does it affect my loan?
APR (Annual Percentage Rate) is the total cost of borrowing expressed as a yearly percentage. Unlike the nominal interest rate, APR includes mandatory fees and charges, making it the standard comparison tool for UK lenders. Under the Consumer Credit Act 1974, all UK lenders must display the APR. A lower APR means you pay less overall — even a 1% difference on a £10,000 loan over 3 years can cost you an extra £150–£200.
Can I repay my loan early in the UK?
Yes. Under the Consumer Credit Act, you have the legal right to repay any personal loan early at any time. Lenders can charge an early repayment fee of up to 1–2 months' interest if you repay more than 12 months early, or up to 1 month's interest within the final 12 months. Use the extra payment field in our calculator to see exactly how much interest you could save by overpaying each month.
What credit score do I need for the best loan rates?
UK lenders use credit reference agencies — Experian, Equifax, and TransUnion — to assess applications. A score above 880 (Experian) or "Good" and above typically qualifies for headline APR rates. Scores below 600 may only be eligible for higher-rate products, sometimes exceeding 30% APR. Checking your credit report before applying (free via Experian, ClearScore, or Credit Karma) helps avoid unnecessary hard searches.
What is the difference between a secured and unsecured loan?
An unsecured personal loan is not tied to any asset — approval is based on your creditworthiness alone, with typical amounts up to £25,000–£50,000. A secured loan (sometimes called a homeowner loan) is secured against your property, allowing larger amounts and potentially lower rates, but your home is at risk if you miss payments. Most high-street personal loans in the UK are unsecured.
How much can I borrow with a personal loan in the UK?
Most UK lenders offer personal loans from £1,000 to £25,000 unsecured, with some specialist lenders going up to £50,000. The maximum you can borrow depends on your income, existing debts, and credit history. Lenders typically use an affordability assessment to ensure your monthly payment is no more than a set proportion of your monthly take-home pay.
How does the Bank of England base rate affect my loan?
The base rate influences what lenders charge. Fixed-rate personal loans lock your rate for the whole term, so once you sign, base-rate moves do not change your payments. Variable products and new offers do move with the base rate, so timing your application can matter.
Should I choose a longer or shorter loan term?
A longer term lowers your monthly payment but increases total interest paid; a shorter term costs more each month but far less overall. Use the term fields above to compare — for example, extending a £10,000 loan from 3 to 5 years can add several hundred pounds in interest.
Are car finance and personal loans calculated the same way?
Personal loans use straightforward reducing-balance amortisation. Car finance such as PCP includes a large optional final "balloon" payment, so the monthly figure is lower but you do not own the car until you pay the balloon. This calculator models the reducing-balance method used by personal and HP loans.
UK Loan Regulation
All UK consumer lending is regulated by the Financial Conduct Authority (FCA). Lenders must be FCA-authorised and must follow responsible lending rules under the Consumer Credit Act 1974. The FCA also caps the cost of payday loans at 0.8% per day. The Money and Pensions Service offers free, impartial debt advice via MoneyHelper (moneyhelper.org.uk).