UK Personal Loan Calculator

How to use the personal loan calculator

Enter the amount you want to borrow, the loan term in years and the interest rate you want to test. Add a fee only if your loan has one. Select “Calculate” to see your estimated monthly repayment, the total interest and the total amount repaid. Use “Reset” to return to the default figures, “Copy Results” to copy a plain-text summary, and “Print” for a printable version of your results.

How personal loan repayments are calculated

This calculator uses the standard repayment (amortisation) formula used for fixed-rate instalment loans. The annual interest rate is converted to a monthly rate, and the loan is spread evenly across the number of monthly payments in the term you enter. At 0% interest, the monthly payment is simply the loan amount divided by the number of payments.

Monthly payment: M = P × r × (1+r)n ÷ ((1+r)n − 1), where P is the amount borrowed, r is the monthly interest rate and n is the number of monthly payments. Displayed figures are rounded to the nearest penny, but intermediate calculations retain full precision.

How much interest will I pay on a personal loan?

The total interest you pay depends on the amount borrowed, the interest rate and the term. A higher rate or a longer term generally increases the total interest paid, even though a longer term can reduce the monthly payment. The table below shows an illustrative rate comparison for a £10,000 loan over 5 years.

Illustrative rate comparison

Figures above are for a £10,000 loan over 5 years and are for illustration only. Use the calculator above to test your own loan amount, rate and term.

How does the loan term affect repayments?

A longer term usually reduces the monthly payment because the loan is spread over more months. If the interest rate stayed the same, a longer term would normally mean more interest is paid overall, because interest is charged for longer.

What happens if the interest rate is higher?

Because interest is charged on the outstanding balance each month, even a small increase in the interest rate can noticeably increase both the monthly payment and the total interest paid over the life of the loan. Use the rate field in the calculator above to compare different rates for your own loan amount and term. Always check any offer you receive against the lender’s own figures: lenders commonly quote an APR, which can include fees and use different calculation methods to the simple fixed-rate model used here, so it will not always match this calculator’s result exactly.

Personal loan example

Someone borrowing £10,000 over 5 years at a 7.9% interest rate, with no fee, would have an estimated monthly repayment of £202.29. Over the full term this comes to a total amount repaid of £12,137.14, of which £2,137.14 is interest. If a £300 fee were added to the loan instead of paid separately, the estimated monthly repayment would rise to £208.35, because interest would then also be charged on the fee.

Personal loan vs car loan

A personal loan is typically unsecured and can be used for a range of purposes, such as home improvements, debt consolidation or general borrowing, and the lender does not usually take a specific asset as security. Car loan or vehicle finance products can involve different structures, such as hire purchase or PCP agreements, where the finance is linked to the vehicle itself and different terms, fees or ownership conditions may apply. Neither type of borrowing is always cheaper than the other; the cost depends on the rate, fees and terms offered for your specific circumstances. If you’re specifically financing a vehicle, our Car Loan Calculator is built around that type of borrowing.

How much can I borrow?

This calculator does not assess how much you could actually borrow. Real-world borrowing limits depend on a lender’s affordability assessment, which typically considers your income, existing outgoings, credit history and other personal circumstances. Different lenders may reach different conclusions for the same applicant. Use this calculator to see what a given loan amount, rate and term would cost, rather than as an indication of what you would be approved for.

Important assumptions

• The calculator uses the standard repayment/amortisation model for a fixed-rate instalment loan.
• The entered interest rate is assumed to remain constant for the whole term.
• The rate you enter is used as a simple, fixed annual interest rate. It is not the same as APR: APR is a standardised measure that can include certain fees and uses calculation conventions that this calculator does not attempt to replicate, so this estimate will not always match a lender’s APR-based figure.
• Repayments are assumed to be made monthly, on a fixed schedule.
• Displayed figures are rounded to the nearest penny, while intermediate calculations retain full precision.
• A fee you enter is treated as a separate, one-off cost unless you choose to add it to the loan amount.
• This is an illustrative estimate, not a loan offer, a lending decision or financial advice. Actual lender calculations can differ because lenders may use different rates, APR conventions, fees and rounding methods.

Methodology reviewed: August 2026. Loan rates, fees and lender criteria can change, so always check the exact rate, APR, term and fees quoted by a lender before making a borrowing decision.