Loan Repayment Calculator
Estimate loan repayments from the amount, APR, and term. Add extra payments to see how much interest you can save and how quickly you could pay the loan off.
How the loan repayment calculator works
When you take out a personal loan, your lender calculates a fixed monthly payment that will clear the debt — including interest — over the agreed term. This structure is called an amortised loan. Although the payment stays the same each month, what it covers changes: early payments are mostly interest, while later payments are mostly principal. This gradual shift is called amortisation.
For example, a £10,000 loan at 6% APR over 5 years produces a monthly payment of £193.33. Over 60 months you repay £11,599.68 in total — meaning £1,599.68 is interest. Choosing a shorter term, say 3 years, raises the monthly payment but dramatically cuts the total interest paid.
UK personal loans typically run from 1 to 7 years, and the interest rate you receive depends heavily on your credit score. Lenders price risk: a stronger credit profile attracts lower rates, reducing both your monthly payment and the total cost of borrowing.
Frequently asked questions
What is an amortised loan?
An amortised loan is repaid through equal regular payments over a fixed term. Each payment covers accrued interest first, with the remainder reducing the principal balance. The split between interest and principal shifts over time, moving toward more principal in later payments.
Does paying off a loan early save interest?
Yes. Most UK personal loans allow early repayment. Lenders may charge an early repayment fee, typically equivalent to 1–2 months' interest. Check your loan agreement before making an overpayment.
How does my credit score affect my loan rate?
Lenders use credit scores to assess risk. A higher score typically means a lower interest rate. The advertised APR must be offered to at least 51% of accepted applicants under UK consumer credit rules.
What is the difference between a secured and unsecured loan?
Unsecured loans, which include most personal loans, do not require collateral. Secured loans are backed by an asset such as your home. Secured loans typically offer lower interest rates, but your asset is at risk if you default.