Loan Repayment Calculator
Know Your Payments ⚡
Calculate your monthly repayments, total interest, and total cost for any loan instantly.
Calculate your monthly repayments, total interest, and total cost for any loan instantly.
A loan repayment calculator works out your monthly payment amount, how much interest you will pay over the life of the loan, and the total amount you will repay. It uses the standard amortisation formula used by banks and lenders. Understanding your repayments before taking out a loan helps you budget effectively and compare different loan offers.
Lenders use the amortisation formula to calculate a fixed monthly payment that covers both interest and principal:
Monthly Payment = P × (r(1+r)^n) ÷ ((1+r)^n − 1)
Where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Each payment covers the interest due that month, with the remainder reducing the principal balance.
What is APR?
APR (Annual Percentage Rate) includes both the interest rate and any mandatory fees, giving a more complete picture of the loan's cost. When comparing loans, always compare APRs rather than just interest rates.
What happens if I overpay?
Overpaying reduces your outstanding balance faster, which means you pay less interest overall and clear the loan sooner. Always check your lender's overpayment policy as some charge early repayment fees.
Does a longer term mean lower payments?
Yes — spreading repayments over a longer term reduces your monthly payment, but you pay significantly more interest overall. A shorter term costs more each month but saves money in the long run.
What is a good interest rate for a personal loan?
UK personal loan rates typically range from around 3% to 30% APR depending on the amount borrowed, your credit score, and the lender. Rates below 10% are generally considered competitive for larger amounts.