Loan Repayment Calculator — Monthly Payments & Schedule
Work out what a personal loan, car loan or other fixed-term loan will cost. Enter the amount, the rate and the term to see your monthly repayment, the total interest and a full repayment schedule. A comparison table shows how the payment changes at different rates and terms so you can find the right balance.
How to use the Loan Repayment Calculator
- Enter how much you want to borrow, the interest rate and whether it is an APR or a plain yearly rate.
- Enter the loan term in years and months, and any arrangement fee.
- Read your monthly repayment, total interest and total cost.
- Use the comparison table and the schedule to see how rates and terms change the cost.
How loan repayments work
A standard loan is repaid in equal monthly instalments. Each instalment covers interest on the outstanding balance and a slice of the amount borrowed, so the balance falls gradually to zero. In the early months most of each payment is interest; later most of it reduces the loan.
Choosing a longer term lowers the monthly payment but increases the total interest, so a lower monthly cost does not mean a cheaper loan. Try different terms in the comparison table to see the trade-off.
APR explained
UK lenders advertise the APR (annual percentage rate), which includes certain mandatory charges and is expressed as an effective annual rate. The calculator converts an APR into the equivalent monthly rate so your result matches how most personal loans are priced. If your lender quotes a plain yearly interest rate, switch the option to “Yearly rate”.
Always compare loans using the total amount repayable, not just the monthly payment, and check for fees and early repayment charges.
Assumptions & important information
- Payments are equal monthly instalments over the term with a fixed rate.
- An APR is converted to the equivalent monthly rate. A yearly rate is divided by 12.
- Arrangement fees are paid upfront in addition to the loan and are not financed unless you add them to the amount borrowed.
- Early repayment charges, payment protection and late fees are not included.
- Interest rates shown in the form are examples only, not current market rates. Enter the rates from your own quote.
- This calculator gives estimates for information only. It is not financial advice and not a mortgage or loan offer. Rates, fees and lender criteria vary, so check the details with your lender or a regulated adviser. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
Ideas & examples
- £10,000 over 5 years at 7.9% APR: Your monthly repayment would be £200.99, with £2,059.19 of interest and £12,059.19 repaid in total.
- Choosing a shorter term: Borrowing the same £10,000 over 3 years costs £311.65 a month, but saves £839.84 in interest compared with 5 years.
- Comparing rates: The comparison table shows the monthly payment and interest at rates one and two points above and below yours, which is useful when you are choosing between offers.
Frequently asked questions
How do I calculate monthly loan repayments?
Enter the amount, interest rate and term and the calculator applies the standard amortisation formula, so your monthly payment pays off the loan exactly at the end of the term.
What is the difference between APR and the interest rate?
The interest rate is the cost of borrowing on the balance. APR also reflects certain charges and is the effective yearly cost. For a loan with no extra fees they are close, but the calculator converts APR to a monthly rate precisely.
Does a longer term cost more?
Usually yes. Monthly payments are lower, but you pay interest for longer, so the total repaid is higher.
Can I repay a loan early?
Often yes, but lenders can charge a limited early settlement fee, which is capped by law. Check your loan agreement before repaying early.
Does the calculator include fees?
You can add an arrangement fee, which is shown in the total cost. It does not change the monthly payment unless your lender adds the fee to the loan.
More free tools you might need
- Loan Interest Calculator — Compare simple and compound interest and see the total cost of borrowing.
- Mortgage Calculator — Work out monthly repayments, total interest and loan-to-value, repayment or interest-only.
- Mortgage Overpayment Calculator — See the interest you save and the time you cut by overpaying your mortgage.
- Mortgage Comparison Calculator — Compare two mortgage deals on rates, fees and true cost over the initial period.