UK Personal Loan Calculator
Estimate your monthly payments, total interest, and total cost of a UK personal loan.
How the UK Personal Loan Calculator Works
Our UK personal loan calculator estimates your monthly repayment, total interest, and total cost of borrowing based on the loan amount, APR, and term you choose. Enter your details to see a clear breakdown of what you will pay each month and how much interest accrues over the life of the loan, along with a month-by-month amortisation schedule.
How Personal Loan Payments Are Calculated
UK personal loans use a standard amortisation formula. Each monthly payment is split between interest on the outstanding balance and repayment of the principal. As the balance reduces, the interest portion shrinks and the principal portion grows, so the loan is fully repaid by the end of the term.
Monthly Payment = P × r(1+r)n / ((1+r)n − 1)
Where P is the loan amount, r is the monthly interest rate (APR ÷ 12), and n is the number of monthly payments. As a worked example, a £10,000 loan at 8.9% APR over 60 months gives a monthly rate of 0.7417%. The monthly payment comes to roughly £206.08, with total interest of about £2,365 over the five-year term.
Typical UK Personal Loan Rates by Amount
UK lenders price personal loans according to the amount borrowed. Smaller loans carry higher rates because the fixed costs of arranging the loan represent a larger share of the balance, while larger loans benefit from economies of scale and stronger competition between lenders. The table below shows typical representative APR ranges you can expect:
- £1,000 – £3,000: 15–25% APR
- £3,000 – £5,000: 8–15% APR
- £5,000 – £15,000: 6–10% APR
- £15,000+: 5–8% APR
These are representative rates — the actual rate you are offered depends on your credit score, income, existing debts, and the lender's own criteria. By law, UK lenders must advertise the rate that at least 51% of accepted applicants receive, but you may be offered a higher personal rate if your credit profile is weaker.
How to Compare UK Personal Loans
When comparing personal loans, the APR is the single most important figure because it includes both the interest rate and any arrangement fees, giving you the true annual cost of borrowing. Always compare loans over the same term — a lower APR over a longer term can cost more in total interest than a slightly higher APR over a shorter term. Use our calculator to model different combinations of amount, rate, and term before you apply.
Check whether the lender charges early repayment fees, as these can offset the benefit of settling early. Also consider whether you want the security of a fixed rate — which most UK personal loans offer — so your monthly payment stays the same for the full term regardless of changes in the Bank of England base rate.
Choosing the Right Loan Term
The term you choose has a big impact on both your monthly payment and the total interest you pay. A shorter term means higher monthly payments but less interest overall, because the balance is cleared faster. A longer term spreads the cost and lowers the monthly payment, but you pay more interest over the life of the loan. For example, a £10,000 loan at 8.9% APR costs £2,365 in interest over 60 months, but around £1,560 over 36 months — saving over £800 in exchange for a higher monthly payment.
Responsible Borrowing
Before taking out a personal loan, make sure the monthly payment is affordable within your budget. A useful rule of thumb is that total debt repayments — including your mortgage or rent, credit cards, and any existing loans — should not exceed 40% of your gross monthly income. Use our calculator to test different scenarios and find a payment you are comfortable with. Always read the credit agreement carefully and check for arrangement fees, late payment charges, and early repayment penalties before signing.
If you are borrowing to consolidate existing debts, make sure the new loan's APR is lower than the weighted average of your current debts, and that you will not be tempted to run up new balances on the cards you have just paid off. Debt consolidation only saves money if you also change the borrowing habits that created the debt in the first place.
Frequently Asked Questions
Typical UK personal loan APRs depend heavily on the amount borrowed. For smaller loans of £1,000–£3,000, expect 15–25% APR. For £3,000–£5,000, rates fall to 8–15%. Loans of £5,000–£15,000 typically carry 6–10% APR, while larger loans above £15,000 can be as low as 5–8%. Your individual rate depends on your credit score, income, and the lender.
UK personal loans use a standard amortisation formula. The monthly payment is calculated as: M = P × (r(1+r)^n) / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (APR divided by 12), and n is the number of monthly payments. Each payment covers the interest for that month plus a portion of the principal, so the balance reduces to zero by the end of the term.
The interest rate is the cost of borrowing the principal alone. The APR (Annual Percentage Rate) includes the interest rate plus any fees charged by the lender, such as arrangement fees. APR gives you the true annual cost of borrowing and is the figure UK lenders must quote by law, making it the best basis for comparing loan offers.
Yes, you can usually repay a UK personal loan early. Under the Consumer Credit Act, lenders can charge an early settlement fee, but it is capped. For loans with more than a year remaining, the fee is capped at 1% of the amount repaid; for loans with less than a year remaining, the cap is 0.5%. Some lenders charge no early repayment fee at all. Paying early saves you interest.