Loan Repayment Calculator
Work out your monthly payment on a personal loan, car finance, or debt consolidation — and see how paying a little extra each month gets you debt-free sooner.
Your scheduled monthly payment
£198.01
You'll pay £198.01 per month for 5 years. Over the life of the loan you'll pay £1,880.72 in interest on top of the £10,000.00 you borrowed.
Balance and interest over time
Year-by-year breakdown
| Year | Payments | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | £2,376.14 | £645.16 | £1,730.98 | £8,269.02 |
| 2 | £2,376.14 | £520.03 | £1,856.11 | £6,412.91 |
| 3 | £2,376.14 | £385.85 | £1,990.29 | £4,422.62 |
| 4 | £2,376.14 | £241.97 | £2,134.17 | £2,288.45 |
| 5 | £2,376.14 | £87.70 | £2,288.45 | £0.00 |
Formula
A standard amortising loan is calculated as
M = P × r(1+r)n / ((1+r)n − 1),
where P is the loan amount, r is the monthly rate
(annual rate divided by 12), and n is the term in months. When the rate
is zero, monthly payment is simply M = P / n.
Each month, interest is charged on the remaining balance and the rest of the payment
reduces the principal — so early payments are mostly interest, and later payments are
mostly principal.
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Frequently asked questions
What's the difference between APR and the interest rate I enter here?▾
APR (Annual Percentage Rate) is the rate lenders advertise — it includes fees and reflects the total cost of credit. The rate this calculator uses is a flat periodic interest rate applied to the balance each month. For a fee-free loan the two will match closely; for a loan with arrangement fees the advertised APR will be higher than the underlying interest rate. Use the lender's stated APR as a working figure unless you know the true periodic rate.
Can I make extra monthly payments to pay off the loan sooner?▾
Yes — that's exactly what the 'Extra monthly payment' field models. Most UK lenders allow overpayments, although some charge an early repayment fee under the Consumer Credit Act (typically up to 1% of the amount overpaid for loans over 12 months remaining, less for shorter terms). Check your loan agreement before committing.
Does this calculator account for arrangement fees or insurance?▾
No. Enter just the principal you're borrowing and the headline interest rate. Arrangement fees, payment protection insurance, and any other charges should be assessed separately when you compare offers.
What's the difference between a personal loan and a mortgage?▾
A mortgage is a secured loan against a property — interest rates are typically lower because the lender can repossess if you default. Personal loans are unsecured, with shorter terms (1–7 years is typical) and higher rates. Use our Mortgage Calculator (coming soon) for property finance.
What if I miss a payment?▾
Missed payments usually trigger a fee and damage your credit file. If you're worried about affording payments, contact the lender first, then a free debt-advice service like StepChange or Citizens Advice. This calculator does not model missed payments — it assumes the schedule runs to completion.