Loan Calculator — UK

Calculate monthly payments, total interest, and repayment schedule for UK loans in pounds sterling.

Loan Details

Loan Amount

Annual Interest Rate (APR)

Loan Term

Yrs

Start Date

Results

Enter loan details and click Calculate

Loan Calculator UK — Work Out Your Monthly Repayment Before You Borrow

A loan calculator helps you work out your exact monthly repayment before signing any loan agreement. Enter the loan amount, annual interest rate, and loan term to instantly see how much you'll repay each month, the total interest charged, and a full repayment schedule. This lets you compare offers from different lenders and choose the loan that fits your budget.

In the United Kingdom, personal loan rates typically range from 3%–30% APR depending on your credit profile, with the advertised representative APR available to at least 51% of successful applicants by FCA rules. Car finance rates vary from 5%–15% APR, while mortgage rates have risen to 4%–6% following Bank of England base rate increases. Even a 1% difference in rate on a £15,000 loan over 5 years saves over £400 in interest — use this calculator before approaching any lender.

What is a Loan?

A loan is a financial arrangement where a lender provides a lump sum to a borrower, who repays it with interest over an agreed period through fixed monthly instalments. UK loans are available from high street banks, building societies, online lenders, and credit unions.

Loans are classified as secured (backed by collateral such as your home — lower rates, higher risk to you) or unsecured (no collateral required — higher rates). Most personal loans in the UK are unsecured.
The monthly repayment is calculated using the standard amortisation formula: Payment = P × r × (1+r)ⁿ / [(1+r)ⁿ − 1], where P is the principal, r is the monthly rate (APR ÷ 12), and n is the term in months.
Your credit score — held by Experian, Equifax, or TransUnion — is the primary factor determining your interest rate. A strong credit history qualifies you for the best representative rates.
By FCA (Financial Conduct Authority) rules, lenders must quote a representative APR that at least 51% of applicants actually receive. If your credit score is below average, you may be offered a higher rate than advertised.

How to Use This Calculator

Enter the Loan Amount in pounds — the total you wish to borrow (e.g., £15,000).
Enter the Annual Interest Rate — use the APR quoted by your lender (e.g., 6.9%).
Set the Loan Term in years and/or months (e.g., 5 years = 60 months).
Optionally select a Start Date to see your exact repayment schedule.
Click Calculate — your monthly repayment, total interest, and full amortisation table appear instantly.
Adjust values to compare scenarios — shorter term vs lower payment, different rates, etc.

Loan Payment 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: £15,000 at 6.9% APR for 5 years (60 months)
r = 6.9 ÷ 12 ÷ 100 = 0.00575
Monthly Repayment = 15,000 × 0.00575 × (1.00575)⁶⁰ / [(1.00575)⁶⁰ − 1]
Monthly Repayment = £296/month
Total Repayment = £17,760 | Total Interest = £2,760

Key Terms

APR (Annual Percentage Rate): The total annual cost of borrowing, including interest rate and all mandatory fees. Under FCA rules, lenders must quote a representative APR that at least 51% of approved applicants receive. Always compare APRs — not just headline rates — when shopping for loans.
Representative APR: The rate advertised by a lender that must be offered to at least 51% of successful applicants. Your personal APR may be higher if your credit score is below average. Always check the rate you're personally offered before accepting.
Loan Term: The agreed repayment period. Shorter terms mean higher monthly repayments but less total interest. A £15,000 loan at 6.9% costs £2,760 in interest over 5 years but only £1,596 over 3 years — saving £1,164 by choosing the shorter term.
Credit Score: Your creditworthiness as assessed by UK credit reference agencies — Experian, Equifax, and TransUnion. Each uses a different scale. You can check your score for free via Credit Karma, Clearscore, or direct with each agency. A higher score gets you better rates.
Early Repayment Charge (ERC): A fee some lenders charge if you repay your loan early. Under the Consumer Credit Act, lenders can charge up to 58 days' interest as an early settlement fee. Always check the terms before overpaying.
FCA Regulation: All UK consumer lenders must be authorised by the Financial Conduct Authority (FCA). Check the FCA Register at register.fca.org.uk before borrowing from any lender — this protects you from unauthorised lenders and loan sharks.

Tips for UK Borrowers

Always compare the representative APR, not just the headline rate. The APR includes all mandatory charges and is the true cost of borrowing.
Use eligibility checkers before applying — most lenders offer a soft search that doesn't affect your credit score. This shows which loans you're likely to be approved for.
Check your credit report with Experian, Equifax, or TransUnion before applying — errors on your file can cost you a better rate.
Consider credit unions — they are FCA-regulated, member-owned, and often offer lower rates than high street banks for smaller loans.
For amounts under £1,000, a 0% purchase credit card may be cheaper than a personal loan if you can repay within the promotional period.
Under the Consumer Credit Act, you have a 14-day cooling-off period to cancel a loan after signing — no penalty.

Frequently Asked Questions

There is no single UK credit score — Experian (0–999), Equifax (0–1,000), and TransUnion (0–710) each use different scales. Generally, a "good" or "excellent" rating with any agency gives you access to the best representative APRs. Lenders also look at your income, existing debts, and payment history, not just the score number. You can check your score for free via ClearScore (Equifax), Credit Karma (TransUnion), or Experian's free tier.

A representative APR is the rate that at least 51% of approved applicants receive — it's a regulatory requirement under FCA rules. That means up to 49% of successful applicants may be offered a higher rate based on their individual credit profile. Always use an eligibility checker first, and review your personal APR offer before accepting any loan.

Significantly. On a £15,000 loan at 6.9% APR: a 3-year term gives a monthly repayment of £463 with £1,596 total interest; a 5-year term gives £296/month with £2,760 total interest. Choosing the shorter term saves £1,164 in interest — at the cost of £167 more per month. If your budget allows, shorter is almost always cheaper overall.

Yes. Under the Consumer Credit Act 1974, you have the right to settle any personal loan early. The lender can charge an early settlement fee of up to 58 days' interest on the outstanding balance. Request a settlement figure from your lender — this shows the exact amount needed to close the loan early and any applicable charges.

All three can offer competitive rates. High street banks (Barclays, HSBC, NatWest, Lloyds) are convenient if you're an existing customer. Building societies often offer competitive rates for members. Online lenders such as Zopa, Sainsbury's Bank, and Tesco Bank frequently top best-buy tables. Always use a comparison site like MoneySuperMarket or Compare the Market to find the best rate for your circumstances.

A full application (hard search) will leave a footprint on your credit file visible to other lenders for 12 months. Multiple hard searches in a short period can lower your score and make you appear financially stretched. To avoid this, use eligibility checkers (soft searches) first — these show your likelihood of approval without affecting your credit score.