Loan Repayment Calculator 2026-27
About to start a new job, or just want to know what you actually take home.
Calculate monthly repayments on any fixed-rate loan in the UK. Personal loans, car finance, or any instalment loan. Shows total interest and full repayment schedule.
Estimates only. Actual rate from your lender may differ. FCA regulated lenders must disclose full APR.
How UK loan repayments are calculated
Personal loan repayments in the UK use the standard amortisation formula: fixed monthly payments that cover interest plus a portion of principal, calculated so the loan clears in full by the end of the term.
The amortisation formula
Monthly repayment = Loan × [r(1+r)^n] ÷ [(1+r)^n − 1], where r = monthly rate (annual ÷ 12) and n = total months. £10,000 loan at 6.5% over 5 years = ~£196/month. Total paid: £11,760 (£1,760 interest).
Interest front-loading in early months
In early months, most of each payment is interest. On the £10,000/5yr example above: month 1 interest is £54; principal is £142. By month 60, interest is barely £1, and almost all £196 goes to principal. This is why early extra payments save the most interest.
APR vs representative APR
The advertised "representative APR" (e.g. 6.9%) is offered to at least 51% of accepted applicants. Your actual rate depends on credit score, income, and loan purpose. Borrowers with excellent credit may get the representative rate; others may be offered significantly higher rates.
Flat rate vs APR — why they differ
Flat rate (sometimes seen in car finance) calculates interest on the original loan balance for the full term. APR calculates interest on the reducing balance. A 4% flat rate over 5 years ≈ 7.4% APR. Always compare on APR, never flat rate.
UK personal loan monthly repayment reference table
Monthly repayment by loan amount, APR, and term
| Loan amount / term | 5% APR | 6.5% APR | 10% APR | 15% APR |
|---|---|---|---|---|
| £5,000 / 3 years | £150 | £153 | £161 | £173 |
| £10,000 / 5 years | £189 | £196 | £212 | £238 |
| £15,000 / 5 years | £283 | £293 | £319 | £357 |
| £20,000 / 5 years | £377 | £391 | £425 | £476 |
| £25,000 / 7 years | £353 | £376 | £415 | £482 |
| £35,000 / 7 years | £495 | £527 | £581 | £675 |
Total cost of the loan
£10,000 at 6.5% over 5 years: total repayment £11,760. Same amount at 10% APR over the same term: £12,720 — £960 extra interest. Choosing the lowest APR saves significantly over a 5-7 year term.
How to pay off a UK personal loan early
Overpayment vs full early repayment
Overpayments (extra regular payments) reduce both interest and term. Early settlement pays the loan off in full immediately. UK regulations under the Consumer Credit Act allow early repayment at any time — but lenders can charge an early repayment charge (ERC) of up to 1-2 months' interest.
ERC calculation example
Under CCA 1974, the maximum ERC on a loan under £8,000 is 1 month's interest. Over £8,000: up to 58 days' interest. On £15,000 at 6.5% owed, ERC is approximately £155 (58 days). Usually still worth paying to clear years of future interest.
Impact of overpayments on £15,000/5yr at 6.5%
| Extra monthly payment | New payoff time | Interest saved |
|---|---|---|
| £0 (standard £293/month) | 5 years | — |
| +£25/month (£318) | 4 yrs 7 mo | £140 |
| +£50/month (£343) | 4 yrs 4 mo | £280 |
| +£100/month (£393) | 3 yrs 10 mo | £490 |
When overpayment may not make sense
If your loan rate is below ~6% and you have alternative uses for the cash (emergency fund, higher-APR debt, pension matching), overpayment may not be the best use of capital. But for rates above 8%, overpaying almost always wins.
UK personal loan types and typical APRs
Unsecured personal loans
Not tied to any asset. Amounts £1,000-£35,000 (some lenders up to £50,000). Terms 1-7 years. Typical APR 5-25% depending on credit score. Best rates reserved for £7,500-£25,000 loans with excellent credit.
Secured loans / homeowner loans
Tied to your home equity. Higher amounts (£10,000-£100,000+) and longer terms (up to 25 years). Lower APRs than unsecured, typically 6-15%. Risk: missing payments can lead to home repossession.
Car finance (HP and PCP)
Hire Purchase (HP): fixed monthly payments, own car at end. PCP: lower monthly payments plus optional balloon at end. Typical APRs 6-12%. PCP not technically a loan but functions similarly — watch the balloon payment.
Credit union loans
Member-owned, non-profit lenders. Typically 12.7% APR cap (except on short, small loans). More willing to lend to lower credit scores than banks. Good alternative to high-cost credit.
Bridging loans
Short-term property finance (3-12 months typical). Used to bridge house purchase before previous sale completes. Rates significantly higher: 0.4-1.5% per month. Arrangement fees 1-2%.
FAQFrequently asked questions about UK personal loans
What is a good interest rate for a personal loan in the UK?
UK personal loan rates range from 5-25% APR depending on credit score and loan size. £7,500-£25,000 loans typically attract the lowest advertised rates (6-8% APR) for excellent credit. Smaller loans or poor credit attract higher rates.
How much can I borrow for a personal loan?
UK unsecured personal loans typically range from £1,000 to £35,000 (some to £50,000). Secured homeowner loans go up to £100,000+. Maximum depends on income, credit score, existing debt, and lender policies.
Should I pay off a loan early?
Usually yes, even with an early repayment charge (ERC). UK ERC is capped by law at 1-2 months' interest. On a 6.5% loan, early payoff still saves significant interest over remaining term. Only reconsider if your loan rate is below 5% and you have better uses for the cash.
What is the difference between APR and interest rate?
Interest rate is the base borrowing cost. APR (Annual Percentage Rate) includes interest plus fees (arrangement fees, broker fees). Always compare APR for true cost comparison. UK lenders must quote representative APR — offered to at least 51% of accepted applicants.
Can I get a personal loan with bad credit UK?
Yes, but rates are typically 20-50% APR. Consider credit union loans (capped at 12.7% APR), guarantor loans, or building credit first with a credit builder card. Avoid payday loans (capped at 0.8%/day, 100% total cap but still extremely expensive).
Where these figures come from
Debt and credit figures on this page come from the Financial Conduct Authority (consumer credit rules), the Bank of England (rate data), and MoneyHelper — the UK's government-backed money-guidance service operated by the Money and Pensions Service (MaPS).
- Consumer credit rules — FCA — Consumer credit.
- Bank Rate (affects variable-rate debt) — Bank of England — Bank Rate.
- Debt help & free advice — MoneyHelper — Dealing with debt.
- Student loan repayment — GOV.UK — Repaying your student loan.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your result shows the repayment schedule, total interest cost, and payoff timeline based on the loan or debt details you entered.
Use this to compare repayment strategies — extra repayments, higher frequency payments, or refinancing at a lower rate. See which approach saves the most interest.
Not a loan offer or approval. Actual loan terms depend on the lender's credit assessment, fees, and the specific product you choose.
Uses standard amortisation formulas with the rate and term you entered. All calculations run in your browser — no data is sent to any server.
Debt repayment outcomes are driven by the interest rate, repayment amount, and loan term. Even small changes to any of these can materially shift the total cost and payoff date.
A 0.5% rate reduction on $30,000 of debt saves hundreds in interest over the life of the loan. Refinancing or negotiating a better rate is often the highest-impact move.
Even $50/month extra on a $20,000 loan can cut months off the term and save significant interest. The earlier you make extra payments, the greater the compounding benefit.
Switching from monthly to fortnightly effectively makes 13 monthly payments per year instead of 12 — reducing the term and total interest without increasing your per-pay amount.
To pay off debt faster, focus on the highest-rate debt first, increase repayment frequency, and avoid taking on new debt while paying down existing balances.
Pay minimums on all debts, then direct every extra dollar to the highest-rate debt. This minimises total interest paid across all your debts.
Moving a credit card balance to a lower-rate personal loan, or refinancing a car loan, can reduce the rate and accelerate payoff.
Reducing your card limit prevents re-borrowing what you've paid off — and improves your borrowing capacity for future applications.
Debt management connects to budgeting, savings, and credit decisions. Use these calculators to plan your next move.