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Loan Repayment Calculator

Work out the monthly repayment and total interest on a loan, or how long it takes to pay off at a set monthly amount.

What do you want to know?

Result

Enter the loan amount, rate and term.

How loan repayments are worked out

Monthly payment

M = P × i ÷ (1 − (1 + i)^−n)

P is the amount borrowed, i the monthly rate (annual rate ÷ 12) and n the number of monthly payments.

Worked example

£10,000 at 6% for 5 years = £193.33 a month

60 payments of £193.33 total £11,599.68, so the loan costs £1,599.68 in interest.

Early payments are mostly interest; later ones mostly pay off the balance. The schedule below the calculator shows how much of each year’s payments goes on interest.

Frequently asked questions

Is the interest rate the same as the APR?

Not quite. The APR includes compulsory fees as well as interest, and is quoted as an effective yearly rate. For a loan with no fees, entering the APR gives a result very close to the lender’s; the lender’s own figures are what count.

How can I pay less interest?

Borrow less, choose a shorter term or find a lower rate. A longer term lowers the monthly payment but usually means paying much more interest overall.

Can I pay a loan off early?

Under the Consumer Credit Act you can repay most personal loans early, and the total you pay is reduced. On a fixed-rate loan the lender may charge compensation, capped at 1% of the amount repaid early (0.5% if less than a year is left). Check your agreement.

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