Loan Repayment Calculator
Calculate your monthly repayment, total interest and full payment schedule for any personal loan. Compare different terms to see how much you can save by paying off sooner.
Last updated: April 2026
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How personal loan repayments are calculated
Personal loans use an amortising repayment structure - each monthly payment is the same amount, but the split between interest and principal shifts over time. In the early months, a larger share of each payment covers interest. As the balance reduces, more of each payment goes toward the principal. By the final payment, almost all of it is principal.
The monthly payment is calculated using the standard annuity formula: P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (APR ÷ 12), and n is the number of monthly payments. This produces a fixed payment that exactly clears the loan over the chosen term.
How loan APR affects total cost
The APR (Annual Percentage Rate) you are offered depends primarily on the loan amount, your credit score, and the lender. UK personal loans typically offer the lowest rates on amounts between £7,500 and £15,000 - lenders advertise their best rates in this range because it is the most competitive segment. Smaller loans (under £5,000) and larger loans (over £25,000) often attract higher rates. Your actual rate may differ from the advertised representative APR - lenders must offer the advertised rate to at least 51% of accepted applicants, but the remainder may be offered a higher rate.
Shorter term versus lower monthly payment
Choosing a longer loan term reduces your monthly payment but significantly increases total interest paid. On a £10,000 loan at 6.9% APR, extending from 3 years to 5 years reduces the monthly payment by around £100, but adds approximately £400 in total interest. The right term depends on your cash flow - but if you can comfortably afford the higher monthly payment of a shorter term, it is almost always the better financial choice.
Early repayment
Most UK personal loans allow early repayment, but lenders are permitted to charge an early repayment fee of up to 58 days' interest on the outstanding balance. For most borrowers, this is still worth paying if you have a lump sum available, as you will save more in remaining interest than the fee costs. Check your loan agreement before making an overpayment.