Loan Repayment Calculator
Enter the loan amount, annual interest rate (APR) and term to see your monthly repayment, the total you will pay back and the total interest cost.
How it works
The standard amortising loan formula is used: Payment = Amount × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate (APR ÷ 12) and n the number of months. Early payments are mostly interest; later ones mostly capital.
APR (Annual Percentage Rate) includes mandatory fees, which is why it is the only fair way to compare loans. A lower headline rate with a high arrangement fee can cost more than a higher APR with none.
Representative APR only has to be offered to 51% of accepted applicants — your personal rate may differ. Overpaying where allowed shortens the term and can cut total interest substantially; UK lenders must allow early settlement, with at most around 1-2 months' interest as compensation.
FAQ
How is a monthly loan repayment calculated?
With the amortising formula: the amount borrowed is spread over the term with compound interest at the monthly rate. For £10,000 over 5 years at 9% APR the monthly payment is about £207, total repayment about £12,455 — meaning roughly £2,455 of interest. This tool computes it exactly.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing alone; APR also folds in compulsory fees, expressed as a yearly rate. UK lenders must quote APR, and it is the figure to compare — a 6.9% rate with a £500 fee can be a worse deal than a clean 8.9% APR depending on size and term.
Can I pay my loan off early?
Yes — under the Consumer Credit Act you can settle early at any time, and the lender can charge at most about one to two months' interest as compensation. Partial overpayments reduce the balance and total interest; check whether your lender recalculates the payment or shortens the term.