Loan Calculator

What Is a Loan Calculator?

Personal loans look straightforward — borrow £X, repay £Y a month. But the total cost figure buried in the small print is what really matters, and most people don't check it until they're already committed. On a £10,000 loan at 7.9% APR over 4 years, you repay £11,766. At 19.9% APR, the same loan costs £13,956. That £2,190 difference is real money that goes to the lender, not to you.

UK personal loan rates range from around 3% for excellent credit to 40%+ for poor credit. The representative APR shown in adverts only needs to be offered to 51% of successful applicants — your actual rate could be higher. The lowest rates typically apply to loans between £7,500 and £15,000, where lenders compete most aggressively. Borrowing just under or over those thresholds often meaningfully changes what you're offered.

Enter the loan amount, the APR you've been quoted, and the repayment term. You'll see the monthly payment, total interest over the full term, and total amount repayable. Adjust the term to find the balance between affordable monthly payments and minimising total interest.

How Do You Use This Loan Calculator?

Enter the loan amount you need, the annual interest rate, and the repayment term. Click Calculate to see your monthly payment, total interest, and total repayment amount.

1. Enter the total amount you want to borrow in pounds.
2. Input the annual interest rate (APR) from the lender's quote.
3. Set the repayment term in years or months.
4. Click Calculate to see your monthly payment amount.
5. Review the total interest and total repayment figures.
6. Adjust the term or amount to find a payment that fits your budget.

How Does the Loan Calculator Formula Work?

The formula used: M = P[r(1+r)^n] / [(1+r)^n - 1] where P = loan amount, r = monthly rate, n = total payments

What Are Some Example Calculations?

A £15,000 personal loan at 7.9% APR over 5 years: Monthly payment = £302.76. Total interest = £3,165.60. Total repayment = £18,165.60.

When Should You Use a Loan Calculator?

Before applying anywhere. Use the calculator to compare quotes from three or four lenders side by side — enter the same loan amount and term with each APR and sort by total repayable, not monthly payment. A loan that appears cheaper per month over 5 years can cost significantly more in total than a higher monthly payment cleared in 3 years.

When considering debt consolidation. List your current debts, their interest rates, and remaining balances. If a consolidation loan offers a lower blended rate over a realistic payoff term, it can reduce total interest and simplify monthly management. But check for early repayment charges on existing debts first — they can easily wipe out the projected saving.

What Do These Terms Mean?

How Do the Options Compare?

What Are the Best Tips to Know?

• Borrow between £7,500 and £15,000 to access the lowest advertised personal loan rates in the UK.
• Use an eligibility checker before applying to avoid hard credit searches that lower your score.
• Pay more than the minimum each month if your lender allows penalty-free overpayments.
• Avoid payment protection insurance (PPI) unless you have no other income protection in place.
• Check the total repayment amount, not just the monthly figure, when comparing loan offers.

What Mistakes Should You Avoid?

• Comparing headline rates without checking the representative APR — only 51% of applicants receive the advertised rate.
• Choosing the longest term to reduce monthly payments without realising total interest doubles or triples.
• Forgetting to account for arrangement fees or early repayment charges in the total cost.
• Taking multiple loan applications in a short period, which creates several hard credit searches.