Overview
This loan repayment calculator shows the monthly cost of a UK personal loan, along with the total you'll repay and how much of that is interest. Enter the amount you want to borrow, the representative APR and the term in years, and you'll get an instant monthly figure plus a full cost breakdown. You can open a year-by-year schedule to see how the balance falls. Use it to compare loan offers, check how the APR affects the total cost, or work out a repayment that fits your budget before you apply.
How it's calculated
A personal loan is repaid in equal monthly instalments. Each payment covers the interest due that month plus a portion of the capital, so the balance steadily reduces — the same amortisation maths used for a mortgage.
We treat the APR as the annual interest rate, convert it to a monthly rate, and find the fixed monthly payment that clears the loan over your chosen term.
M = P · r · (1 + r)^n ÷ ((1 + r)^n − 1)
Where M = monthly payment, P = amount borrowed, r = monthly rate (APR ÷ 12) and n = number of months (years × 12). Real APRs also fold in fees, so your agreement may differ slightly.
Worked example
Take a £10,000 loan at 8.9% APR over 5 years:
| Amount borrowed | £10,000 | |
|---|---|---|
| Representative APR | 8.9% | |
| Term | 5 years (60 months) | |
| Monthly repayment | ≈ £207 | |
| Total repaid | ≈ £12,430 | |
| Total interest | ≈ £2,430 |
So you'd pay about £207 a month, repaying roughly £2,430 in interest over the five years. A shorter term raises the monthly payment but cuts the total interest — try different terms above.
Current rates & key facts
UK personal loan key facts
| Item | Detail |
|---|---|
| Representative APR | The advertised rate at least 51% of accepted applicants receive |
| Lowest-rate band | Loans of £7,500–£15,000 often carry the lowest APRs |
| Bank of England base rate | 3.75% (June 2026) — influences loan pricing |
The APR you are offered depends on your credit profile, the amount and the term. The "representative APR" is only guaranteed to at least 51% of accepted borrowers — your personal rate may be higher.
Last updated 18 June 2026 · Source: FCA — Personal loans and credit