Personal Loan Interest Calculator
Work out exactly what a personal loan will cost you. Enter your loan amount, interest rate, and term to see your monthly repayment, total interest, and total amount repayable.
Calculate Your Loan Repayments
Enter your loan amount, annual interest rate (APR), and how many months you’ll take to repay it. The calculator uses standard amortization to instantly work out your monthly repayment and the total interest you’ll pay over the life of the loan.
Your Repayment Summary
Updates automatically as you type
Comparing Loan Types
A quick overview of common personal loan types available in the UK and how they typically differ.
| Loan Type | Typical APR Range | Security Needed | Best Suited For |
|---|---|---|---|
| Unsecured Personal Loan | ~6% – 25% | None. | Borrowers with good credit wanting a fixed monthly repayment. |
| Secured / Homeowner Loan | ~5% – 15% | Property or other asset. | Larger loan amounts or longer terms, often lower rates. |
| Guarantor Loan | ~25% – 50% | A guarantor’s promise to repay. | Borrowers with limited or poor credit history. |
| Credit Union Loan | ~10% – 27% (capped by law) | None, membership required. | Community-based borrowing with capped interest rates. |
| 0% Purchase Finance | 0% (promotional) | None. | Short-term, point-of-sale borrowing for specific goods. |
Personal Loan FAQ
Answers to the most frequently asked questions about calculating and understanding personal loan interest.
Most personal loans use a fixed monthly interest rate applied to the outstanding balance, calculated so that each equal monthly repayment covers that month’s interest plus a portion of the capital. This is known as amortization, and it means you pay more interest and less capital in the early months of the loan.
The interest rate is the cost of borrowing the capital itself, while APR (Annual Percentage Rate) includes the interest rate plus most mandatory fees, expressed as a single yearly figure. APR gives a more complete picture of the true cost of a loan, which is why lenders are required to display it.
Most personal loans allow early repayment, either in part or in full. Lenders may charge an early repayment fee, but in the UK this is typically capped at a maximum of one or two months’ interest, depending on how much of the term remains.
Yes. Lenders use your credit history to assess risk, and applicants with stronger credit profiles are typically offered lower interest rates. The rate you are advertised is not always the rate you receive, since many lenders only have to offer their headline APR to 51% of successful applicants.