UK Loan Repayment Calculator
Our free UK loan repayment calculator instantly estimates your monthly payments for any personal or business loan. Enter your loan amount, annual interest rate, and term in years to see your repayment schedule — no account or registration needed.
Monthly Repayment
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How Monthly UK Loan Repayments Are Calculated
This calculator uses the same amortisation formula as a mortgage: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate (annual APR ÷ 12), and n is the number of monthly payments. Enter your loan amount in pounds, annual interest rate (APR), and term in years or months. The tool outputs your fixed monthly repayment, total amount payable, and total interest cost over the life of the loan.
Frequently Asked Questions
How is a monthly loan repayment calculated in the UK?
Monthly loan repayments are calculated using the amortisation formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments. This gives a fixed monthly payment that covers both interest and principal over the loan term.
What is APR and how does it affect my UK loan?
APR (Annual Percentage Rate) represents the total annual cost of a loan including interest and mandatory fees. It allows fair comparison between different lenders. For example, a loan with a 5% interest rate but high arrangement fees will have a higher APR. Always compare APR, not just interest rate, when choosing a UK loan.
Can I repay my personal loan early in the UK?
Yes, most UK personal loans allow early repayment. However, many lenders charge an Early Repayment Charge (ERC) of up to 1–2 months' interest. Under UK Consumer Credit Act regulations, you are entitled to a rebate of future interest if you settle early. Check your loan agreement for specific terms.
What is the average personal loan interest rate in the UK in 2026?
Personal loan interest rates in the UK in 2026 typically range from approximately 6% APR for excellent credit to 40%+ APR for poor credit. The best rates for loans between £7,500 and £15,000 tend to be the most competitive. Always check your eligibility with a soft-search tool before applying.
How much can I borrow with a UK personal loan?
UK personal loan amounts typically range from £1,000 to £50,000, with repayment terms of 1 to 7 years. The amount you can borrow depends on your credit score, income, existing debts, and the lender's criteria. Use our calculator to see what monthly repayments would look like for different amounts.