How to use the Personal Loan Calculator
- 1 Enter the loan amount you want to borrow.
- 2 Enter the APR from the lender's quote.
- 3 Choose the term in years.
- 4 Read the monthly repayment and total cost.
Worked example
Borrowing £10,000 over five years at 6.9% APR. The monthly repayment is about £196.56. Over 60 payments, the total repaid is about £11,793, so the loan costs £1,793 in interest. Choosing a three-year term instead would raise the monthly payment but cut the total interest by about £700.
Features
APR based
Uses the annual percentage rate to work out the monthly rate.
Fixed repayments
The same monthly payment for the whole term.
Total cost
Total interest and total repayable.
Easy comparison
Compare amounts, rates and terms.
When to use it
Car purchase
Compare a loan with dealer finance.
Home improvements
Budget for a kitchen or extension.
Debt consolidation
Check if one loan is cheaper than several debts.
Weddings and big costs
See what you can afford each month.
Frequently asked questions
What is APR?
The annual percentage rate, the yearly cost of borrowing including interest and compulsory fees. It is the best way to compare loans.
What is a representative APR?
The rate at least 51% of successful applicants get. You may be offered a higher rate depending on your credit history.
Is a longer loan cheaper?
The monthly payment is lower, but you pay more interest in total.
Why do loans of £7,500 to £15,000 have lower rates?
Lenders compete hardest for these amounts, so rates are often lowest in this band. Borrowing slightly more to reach a cheaper band can sometimes cost less overall.
Can I repay a loan early?
Yes. Under the Consumer Credit Act you can repay early, but lenders can charge up to 58 days of interest, or 28 days if less than a year is left.
Does applying affect my credit score?
A full application leaves a hard search. Use eligibility checkers with soft searches first to compare without harming your score.
Is there a cooling-off period?
Yes. You have 14 days after signing to withdraw, as long as you repay the money and any interest for the days you had it.
What is the difference between secured and unsecured loans?
Unsecured loans are not tied to your home. Secured loans use your property as security, so it could be at risk if you do not repay.
Can I get a loan with bad credit?
Possibly, but at higher rates. Be careful of high-cost credit, and get free debt advice if you are struggling.
How much can I borrow?
Most unsecured personal loans range from £1,000 to £25,000 or more, depending on your income and credit history.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated