Loan Calculator
Monthly repayments · Total interest · Full amortisation schedule · Free · Instant · No signup
How the Monthly Payment is Calculated
This calculator uses the standard amortising loan formula. Each month you pay a fixed amount — part of it covers the interest charged that month, and the rest reduces the outstanding balance (principal). Early payments are mostly interest; later payments are mostly principal.
Where M = monthly payment, P = loan amount, r = monthly interest rate (annual rate ÷ 12), n = number of monthly payments.
Typical UK Loan Rates (2026)
| Loan Type | Typical APR Range | Term |
|---|---|---|
| Personal loan (good credit) | 6% – 12% APR | 1 – 7 years |
| Personal loan (fair credit) | 12% – 25% APR | 1 – 5 years |
| Car finance (PCP/HP) | 5% – 10% APR | 2 – 5 years |
| Mortgage (fixed rate) | 4% – 6% APR | 10 – 35 years |
| Credit card (balance transfer) | 0% for 12–24 months, then 20%+ | Revolving |
| Payday / short-term loan | 100% – 1,500%+ APR | Days to months |
APR figures are indicative only. Your actual rate depends on your credit history, loan amount, and lender. Always check the representative APR before signing.
Frequently Asked Questions
What is an amortisation schedule?
An amortisation schedule is a table that breaks down every payment over the life of a loan. It shows how much of each monthly payment goes towards interest versus reducing the principal balance. In the early months, interest makes up the majority of each payment. As the balance falls, the interest portion shrinks and more goes towards principal.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal each year, expressed as a percentage. APR (Annual Percentage Rate) includes the interest rate plus any compulsory fees (arrangement fees, broker fees, etc.). APR is the standardised figure used in the UK for comparing loans — always compare APRs rather than headline interest rates.
Does a longer term mean lower monthly payments?
Yes — spreading a loan over more months reduces the monthly payment. However, you pay more total interest because you are borrowing for longer. For example, a £10,000 loan at 8% over 3 years costs about £313/month and £1,277 total interest. Stretched to 5 years, it costs £203/month but £2,166 total interest.
What happens if I overpay each month?
Most UK personal loans allow early or overpayments, though some lenders charge an early repayment fee (typically 1–2 months' interest). Overpaying reduces your outstanding balance faster, which means you pay less total interest. Check your loan agreement for the terms before overpaying.
Is this calculator private?
Yes. All calculations run instantly in your browser using JavaScript. No data is sent to any server and nothing is stored.
Can I use this for mortgages?
Yes — enter the mortgage amount, your fixed rate, and the remaining term. Bear in mind that most UK mortgages have a short fixed-rate period (e.g. 2 or 5 years) and then revert to the lender's SVR. Re-run the calculator when you renew to see your new payments.