Loan Repayment Calculator — UK

Calculate your monthly repayment, total interest charged, and full repayment schedule for UK loans.

Loan Details

Loan Amount

Annual Interest Rate (APR)

Loan Term

Yrs

Results

Enter loan details and click Calculate Payment

Loan Payment Calculator UK — Know Your Monthly Repayment Before You Commit

This loan payment calculator helps you work out your exact monthly repayment for any UK loan — personal loans, car finance, mortgages, or business loans. Enter the loan amount, APR, and repayment term to instantly see your monthly repayment, total interest cost, and a month-by-month repayment schedule. Use it to compare lenders and make an informed borrowing decision.

In the UK, the best personal loan rates start from around 5.9% APR for amounts between £7,500 and £15,000 — the "sweet spot" where lenders offer the most competitive rates. For smaller amounts under £3,000, rates are typically higher. Car finance (PCP or HP) rates generally range from 5%–14% APR. Use this calculator to understand the true cost before visiting a dealership or signing a loan agreement.

What is a Loan Repayment?

A loan repayment is the fixed monthly amount you pay to your lender until the loan is fully settled. Each repayment is split between reducing the capital (the amount you borrowed) and paying the interest charged by the lender. UK lenders are required to provide a full repayment schedule — known as a credit agreement — before you sign.

In the early months, most of your repayment goes towards interest. As the balance reduces, more goes towards capital — this is called amortisation.
UK lenders must quote the APR (Annual Percentage Rate) which includes interest plus any mandatory fees, making it the true cost of borrowing.
Under FCA rules, lenders must carry out affordability checks to ensure the repayment is within your means before approving a loan.
You have a 14-day cooling-off period after signing any consumer credit agreement — you can cancel without penalty within this window.

How to Use This Calculator

Enter the Loan Amount in pounds — the amount you want to borrow (e.g., £10,000).
Enter the Annual Interest Rate (APR) — use the rate quoted by your lender (e.g., 7.9%).
Set the Loan Term in years and/or months (e.g., 4 years = 48 months).
Optionally set a Start Date to generate a dated repayment schedule.
Click Calculate — your monthly repayment, total interest, and full schedule appear instantly.
Adjust the loan amount or term to see how different scenarios affect your monthly outgoings.

Loan Repayment Formula

Monthly Repayment = P × r × (1 + r)ⁿ / [(1 + r)ⁿ − 1]

P = Principal loan amount
r = Monthly interest rate = APR ÷ 12 ÷ 100
n = Loan term in months
Example: £10,000 at 7.9% APR for 4 years (48 months)
r = 7.9 ÷ 12 ÷ 100 = 0.006583
Monthly Repayment = 10,000 × 0.006583 × (1.006583)⁴⁸ / [(1.006583)⁴⁸ − 1]
Monthly Repayment = £244/month
Total Repayment = £11,712 | Total Interest = £1,712

Key Terms

APR (Annual Percentage Rate): The total annual cost of borrowing including interest and all mandatory fees, expressed as a percentage. FCA-regulated lenders must quote the APR prominently. Always compare APRs across lenders for a like-for-like comparison of the true borrowing cost.
PCP (Personal Contract Purchase): A popular UK car finance product where you pay monthly instalments for a set term, then have the option to pay a final "balloon payment" to own the car, return it, or part-exchange it. PCP monthly payments are lower than HP but you don't automatically own the car at the end. Always calculate the total amount payable, not just the monthly figure.
HP (Hire Purchase): A car finance agreement where you pay equal monthly instalments and automatically own the vehicle at the end of the term. HP repayments are higher than PCP but straightforward — no balloon payment or mileage restrictions. Common for new and used cars through dealerships.
Total Amount Payable: The total of all monthly repayments plus any fees — the complete cost of the loan. UK lenders are required to show this figure in all credit advertisements and agreements. This is the number to compare, not just the monthly repayment.
Affordability Check: A mandatory assessment by FCA-regulated lenders to verify that the loan repayments are affordable relative to your income and existing financial commitments. This protects borrowers from taking on unmanageable debt.
Settlement Figure: The exact amount needed to repay a loan in full before the end of the agreed term. In the UK, you can request a settlement figure at any time under the Consumer Credit Act. The figure includes the outstanding capital plus a small interest charge but excludes future interest.

Tips for UK Borrowers

Loan rates are often lowest for amounts between £7,500 and £15,000 — if you need £6,000, it may be worth checking if borrowing slightly more qualifies you for a lower APR (only if you can afford the repayments).
Use soft eligibility checkers on comparison sites (MoneySuperMarket, MoneySavingExpert) before applying — these don't affect your credit score.
For car finance, always ask for the total amount payable, not just the monthly payment — low monthly PCP payments often mask a large total cost.
Check whether your loan has a fixed or variable rate. Fixed rates give certainty; variable rates can increase if the lender changes their pricing.
Under the Consumer Credit Act, you have the right to a 14-day cooling-off period — you can cancel any credit agreement within 14 days of signing.
If you're struggling with repayments, contact your lender early — FCA rules require lenders to offer forbearance options such as payment deferrals or reduced payment plans.

Frequently Asked Questions

UK personal loan rates typically follow a tiered structure. The lowest rates are usually available for amounts between £7,500 and £25,000. Borrowing under £3,000 often attracts rates of 15%–30%+ APR, while £7,500–£15,000 typically offers the best representative rates (sometimes under 6% APR for good credit). Always check the total cost — borrowing slightly more at a lower rate can sometimes cost less overall.

Many UK online lenders offer same-day or next-day funding once approved. High street bank loans may take 2–5 working days. The process involves a credit check, identity verification, and affordability assessment. Having your documents ready (proof of income, bank statements) speeds up the process. Some lenders offer instant online decisions with funds transferred within hours.

An unsecured personal loan requires no collateral — you qualify based on your credit score and income. Most UK personal loans are unsecured, with amounts up to £25,000–£50,000. A secured loan is backed by an asset (usually your home) — this allows larger borrowing amounts and lower rates, but your home is at risk if you don't keep up repayments. Secured loans are regulated by the FCA and covered by the Consumer Credit Act.

Yes, but rates will be significantly higher. There are specialist UK lenders who offer loans to people with poor credit, CCJs, or defaults — but APRs can be 30%–50% or more. Guarantor loans (where a friend or family member agrees to cover repayments if you can't) offer lower rates. Credit unions are also worth considering — they assess affordability more flexibly and are FCA-regulated. Avoid payday lenders and unregulated sources.

PCP offers lower monthly payments and flexibility at the end of the term (return, buy, or swap the car), making it popular for those who like changing cars every 3–4 years. HP has higher monthly payments but you automatically own the car at the end with no balloon payment. If you want to own the car outright and drive it long-term, HP is simpler and often cheaper overall. Always compare the total amount payable, not just the monthly figure.

Missing a repayment will typically result in a late payment fee and a missed payment recorded on your credit file — this stays visible for 6 years. Multiple missed payments can lead to a default notice. Under FCA rules, lenders must treat customers in financial difficulty fairly and offer support before taking enforcement action. Contact your lender immediately if you're struggling — they may offer a payment holiday or reduced repayment plan.