Personal Loan Repayment Calculator
A £10,000 personal loan at 8.9% representative APR over five years costs about £207 a month, £12,426 in total repayments, and £2,426 in interest. Use this calculator to compare monthly payments and full borrowing cost for any amount, APR, and term before you apply.
Calculation method: Amortised loan repayment formula. This tool runs a model on the figures you enter, so there is no official rate table behind the result.
Calculator
The amount you plan to borrow before any fees.
The annual percentage rate shown on the lender's quote or comparison site.
Most UK personal loans run from one to seven years.
Estimated monthly payment
£207.10
Over 60 months at 8.9% representative APR
Total amount repaid (estimate)
£12,425.91
Total interest (estimate)
£2,425.91
APR used
8.9%
Where your repayments go
What this calculation assumes
Monthly payment is the standard annuity formula, P x (r(1+r)^n) / ((1+r)^n - 1), where r is the interest rate you enter divided by twelve and n is the term in months. Interest is charged on the reducing balance each month.
- The interest rate you enter is fixed for the whole term
- Payments are monthly, equal, and made on time
- Fees, insurance and any early repayment charge are excluded unless you enter them
- This is not a quote and no lender's actual pricing is used
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How personal loan repayments work
A personal loan spreads the amount you borrow plus interest into equal monthly payments over a fixed term. The calculator uses the standard amortisation formula: it converts the representative APR to a monthly rate, then works out the payment that clears the balance by the end of the term.
The representative APR is the rate lenders must offer to at least 51 percent of accepted applicants. Your personal rate may differ. Read our personal loans UK guide for how loans work, or see our guide to minimum credit card payments if you are comparing loan costs with revolving credit, or use the debt repayment calculator to plan paying down several balances.
Choosing a loan term
A longer term lowers the monthly payment but usually increases total interest. A shorter term costs more each month but less overall. Before you borrow, check whether an emergency fund could cover the expense without taking on debt, and compare options on the personal finance hub.
Frequently Asked Questions
The payment is found with the standard amortisation formula, which spreads the amount borrowed plus interest evenly across the term. It uses the loan amount, the monthly interest rate (the APR divided by 12), and the number of months, so each payment covers some interest and some of the balance.
APR, the annual percentage rate, shows the yearly cost of borrowing including interest and any compulsory fees. It lets you compare loans on a like-for-like basis. The advertised figure is the representative APR, which lenders must offer to at least 51 percent of accepted applicants.
The interest rate is the cost of the money you borrow. APR includes that interest plus certain compulsory charges, so it is usually a little higher and gives a fuller picture of the cost. Comparing APRs is the fairer way to compare loans.
Not always. Lenders only have to offer the advertised representative APR to at least 51 percent of accepted customers, so your personal rate could be higher depending on your credit history and the amount and term you choose.
Usually yes. A longer term lowers the monthly payment but you pay interest for longer, so the total interest is normally higher. A shorter term costs more each month but less overall. The calculator shows both figures so you can compare.
Most personal loans allow early repayment, but lenders can charge up to one to two months of interest as an early settlement fee on regulated agreements. Check the agreement, as repaying early can still save money overall by cutting future interest.
An unsecured personal loan is not tied to an asset. A secured loan is backed by something you own, often your home, which can mean a larger amount or lower rate, but the asset is at risk if you do not keep up payments.
A full application leaves a hard search on your credit file, which can dip your score slightly. Many lenders offer an eligibility or quotation check using a soft search, which does not affect your score, so you can see likely rates before you formally apply.
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Related Guides
Personal Loans UK: How They Work in 2026
Secured and unsecured loans, representative APR, eligibility, and alternatives compared.
Read guideCredit Card Minimum Payments: The True Cost
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Read guideEmergency Fund UK: How Much to Save and Where to Keep It
Three to six months of essentials in an easy access account before you borrow.
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Sources and method
This calculator has no external rate table behind it. The result comes from the figures you enter and the model described in our methodology.
Method: Amortised loan repayment formula.
Spotted a figure that looks wrong? Report a correction and we will check it against the source above.
Further reading
Background references used while writing this page. The sources behind the calculated figures are listed above.
Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.