Loan repayment
Enter your loan details to estimate monthly repayments, total interest and total repaid.
Results assume a fixed interest rate and fixed monthly payments.
Results
These are estimates based on your inputs.
How this calculator works
We use the standard amortised loan formula (fixed interest rate and fixed monthly payments). If your loan has fees, flexible payments, or variable rates, results may differ.
What this calculator does
This loan repayment calculator estimates your fixed monthly payment for a standard loan, plus the total interest and total amount repaid over the full term. It is designed for loans with a fixed interest rate and regular monthly payments.
It is useful for comparing loan offers, budgeting for repayments, or understanding how the term and interest rate affect your overall cost.
How the formula works
We use the standard amortised loan formula. The loan amount grows each month by the interest rate, then your payment reduces the balance. The formula finds the fixed monthly payment that reduces the balance to zero by the end of the term.
If the rate is 0%, the monthly payment is simply the loan amount divided by the number of months. Otherwise, the payment is higher because interest accrues on the outstanding balance.
Worked example
Example: you borrow £10,000 over 36 months at 8.9% interest. The calculator estimates a monthly payment around £317, a total repaid around £11,400, and about £1,400 of interest.
If you extend the term, the monthly payment falls, but the total interest paid increases.
Common mistakes
- Entering years instead of months for the term.
- Using APR when the loan advertises a different nominal rate.
- Forgetting fees that are added to the loan balance.
- Assuming early repayment penalties are included.
When to use this calculator
Use this for personal loans, car finance, or any fixed-rate loan with a set term. For mortgages, use the dedicated mortgage calculator, which is more common in the UK market.
FAQs
Is this the same as APR?
Not always. APR includes fees and compounding assumptions. If your loan has fees, your effective APR may be higher than the simple interest rate you enter here.
Does it include fees or insurance?
No. It assumes a clean loan balance with no added fees or insurance. Add fees to the loan amount if they are financed.
What if I overpay?
Overpayments reduce interest and total repaid. This calculator assumes fixed payments only.