If you’re considering getting a loan, it’s crucial to understand the types of products available and the risks and advantages of each approach. Use our calculator to work out exactly what you’ll need to pay each month and how much interest you’ll pay. We also explain what extra costs you need to be aware of, the differences between the most common types of loan and how to work out what your loan term should be.
The benefit of our loan calculator is that it’s independent. You simply plug in the APR of the loan you’re considering to see your monthly payments. This works for any personal loan available, rather than being tailored to a specific provider’s rates.
If you're looking for a business loan, rates and payments may differ from the amounts below.
The costs below are for illustrative purposes. Check the exact amounts with the lender when you decide on a loan.
A monthly payment of:
£137.11
Total cost of credit:
£726.65
based on an APR of:
3.7%
That's a total of:
£8,226.65
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Personal loans
A personal loan is a type of unsecured loan, which means what you borrow isn't secured against any asset like your home. You borrow a fixed amount and pay it back plus interest over a set period.
Bad credit loans
If you have a poor credit history, you could still borrow money with a bad credit loan. They can help you improve your credit rating if you keep up with repayments, but they usually come with a high APR.
Guarantor loans
A guarantor loan works by appointing someone else, like a parent or friend, to make your loan repayments if you're unable to. You could get a guarantor loan if you have a poor credit record, or if you've not borrowed before.
Business loans
This type of loan can only be used for business purposes and it must be paid back over time, with interest. For example, a business loan can be used for hiring more staff, buying equipment, marketing and improving cash flow.
Using our loan repayment calculator is a quick and easy way to determine how much it will cost to borrow the sum you need. It will help you to compare the overall cost of taking out a loan over different timeframes and will also give you an idea of whether you can afford the monthly repayments on a loan of that size.
You can use our free loan repayment calculator to find out how much it will cost you to borrow different amounts of money over a range of terms based on the interest rates you’ve seen advertised.
Just enter the amount, timeframe, and interest rate in the relevant fields, and we will tell you how much your monthly repayments will be and how much the loan will cost you overall and in interest.
The calculations assume you’ll pay the same fixed interest rate for the entire repayment period. The total cost could therefore differ if you decide to under or overpay or miss a payment, resulting in additional fees.
The figures shown may also differ from the exact amounts charged by lenders if there are extra charges, such as an arrangement fee that is added to the loan amount.
To use our loan repayment calculator, simply:
Check the APRs of the loans available
Consider how much you want to borrow
Think about how long you need to repay the loan
Enter the relevant details into the calculator
Try different variations (amount and term) based on the APRs shown in our comparison table to find the right deal
Based on the details you provide, the loan repayment calculator will tell you how much your monthly repayments will be and how much you’ll repay overall. Then, all you need to do is apply for the loan that best suits your needs.
The repayment amount you must pay each month to service your loan will depend on:
1. The term of the loan – or the length of time you take to pay it back. The longer the term, the lower your monthly repayments. However, longer-term loans cost more overall because you pay interest for longer. That’s why you should generally choose the shortest term over which you can afford to repay a loan.
Example: If you borrow £5,000 at a rate of 8%, you’ll pay around £211 in interest over a one-year term. But if you borrow the same amount at the same rate over three years, the interest payable jumps to about £617.
2. The interest rate – often expressed as an APR (Annual Percentage Rate) – also affects how much you have to pay each month, and the higher the interest rate, the higher the repayments you will need to make.
Example: If you borrow £5,000 at a rate of 8%, you’ll pay around £211 in interest over a one-year term. Increase the interest rate to 10%, and the cost over one year rises to about £263.
3. The amount you borrow – the more money you borrow, the more you’ll need to pay back. So, it follows that your repayments will be higher if you borrow £10,000 than if you borrow £5,000.
Example: If you borrow £5,000 at a rate of 8%, you’ll pay around £211 in interest over a one-year term. However, borrowing £10,000 on the same terms would cost around £526.
When comparing loans, there are other costs to bear in mind, such as arrangement fees. These are included in the APRC, which helps you compare the total costs of different loans.
It’s also vital to check out any loan offers you find independently online to avoid falling foul of a loan scam.
APR stands for annual percentage rate. It represents the total cost of taking out a loan, credit card, or mortgage over one year – including compulsory fees.
The APR does not, however, include fees you may incur due to your management of the loan, such as:
Late payment fees – charged when you miss a payment date
Early repayment fees – charged if you want to repay your loan earlier than agreed at the outset
When you take out a loan, you generally agree to make monthly repayments until you have paid back the full amount, plus interest at the agreed rate.
This means that you can calculate monthly loan repayments by dividing the total loan amount plus interest by the number of months you need to pay it off.
But you don’t need to do the maths because our handy loan repayment calculator does it for you!
To compare loans using the loan repayment calculator, simply:
1. Read our loan guide and decide what kind of loan you want. There are lots of different types of loans available, including:
2. Once you know which type you want, use our comparison tables to find a suitable loan. Remember, if you are looking for a business loan, rates may vary.
3. Use the loan repayment calculator to check how much the loan costs and whether you can afford it based on the amount you want to borrow, the interest rate and the time you need to repay it
4. Repeat this process using the details of any other loans you're interested in to work out which is the cheapest overall
Before you take out a loan, you need to decide what type of loan is right for you. Popular options include:
Personal loans - these generally let you borrow up to £25,000 and repay it over a period of up to 10 years. Monthly repayments are typically fixed, which helps with budgeting. However, you may be able to borrow more cheaply via a low-interest credit card
Secured loans - these are guaranteed against an asset such as your home or car and allow you to borrow more money over a longer term than an unsecured loan. However, because you borrow more and take longer to pay it back, they typically cost more overall – even if the interest rate charged is lower. If you can't repay your loan, your home or vehicle could also be repossessed
Business loans - this type of loan is similar to a personal loan, as you'll still need to complete an application to borrow money and pay it back, with interest, over time. However, this loan must be used purely for business purposes, for example the money might help to pay for stock or help you to take control of cash flow.
Last updated: November 14, 2024
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