Loan Calculator UK
Estimate the monthly payment, total interest and total cost of a loan.
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Amortization schedule (yearly)
| Year | Opening | Paid / yr | Interest | Principal | Closing |
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How it works
A loan is repaid in equal monthly instalments (EMIs). Each instalment covers the interest due that month plus part of the principal, so early payments are mostly interest and later ones mostly principal.
EMI = P × r × (1+r)^n / ((1+r)^n − 1)- P = loan amount
- r = monthly interest rate (annual ÷ 12 ÷ 100)
- n = number of months
- Move the sliders to see the EMI, total interest and full schedule update instantly.
Frequently asked questions
How are loan repayments calculated?
From the loan amount, interest rate and term using a standard amortisation formula, giving a fixed monthly payment that clears the balance by the end.
What is representative APR?
The advertised rate that at least 51% of accepted applicants receive. Your personal rate may be higher depending on your credit assessment.
What does a £10,000 loan cost monthly?
Around £198 a month over 5 years at 7% APR, repaying about £11,880 in total including roughly £1,880 of interest.
What is the difference between secured and unsecured loans?
Unsecured loans are not tied to an asset; secured loans use property as security, often at lower rates but with a repossession risk if you default.
Does a shorter term cost less overall?
Yes. A shorter term means higher monthly payments but less total interest, because you borrow the money for less time.
What are early-repayment charges?
Fees some lenders apply if you repay a loan ahead of schedule. Check the agreement, as they can reduce the saving from paying off early.
Working out loan repayments
This calculator estimates the monthly repayment and total cost of a loan from the amount borrowed, the interest rate and the term. Each fixed monthly payment covers the interest due plus a portion of the capital, so the balance falls to zero by the end.
Representative APR
UK lenders advertise a representative APR, which at least 51% of accepted applicants receive — your actual rate can differ depending on your credit profile. The APR includes interest and certain compulsory fees, making it the fairest way to compare loan offers.
Worked example
Borrowing £10,000 over 5 years at 7% APR costs about £198 a month, repaying roughly £11,880 in total — around £1,880 of interest. A shorter term raises the monthly payment but cuts the total interest.
Secured vs unsecured
Unsecured personal loans are not tied to an asset; secured loans (such as a homeowner loan) use property as security, often at lower rates but with the risk of repossession. Always check for early-repayment charges. This is an estimate, not financial advice.
Results are estimates for general guidance in United Kingdom and may not reflect the latest local rates, fees or rules. Check official sources before making decisions.