- Repayment loan — you pay back capital and interest each month. Balance reduces to zero.
- Interest only — you only pay interest each month. Capital is owed in full at the end.
- Personal loan: 6–13% APR
- Car finance (PCP): 7–12% APR
- Credit card: 20–30% APR
- Peer-to-peer: 5–8% APR
- Bank overdraft: 20–40% EAR
- This calculator gives estimates only
- Always check the full APR before borrowing
- Consider arrangement fees on top
- Early repayment charges may apply
How to use the Loan Calculator
Enter the loan amount, annual interest rate and loan term. Choose between a repayment loan (where you pay off capital and interest each month) or interest-only. Your monthly payment, total repayment and total interest appear instantly, along with a full yearly schedule.
Frequently Asked Questions
APR (Annual Percentage Rate) is the true cost of borrowing expressed as a yearly percentage. It includes the interest rate plus any mandatory fees, making it easier to compare different loan products. Always compare APR rather than the headline interest rate.
With a repayment loan you pay back both the capital (amount borrowed) and interest each month, so the balance reduces to zero by the end of the term. With interest-only you only pay the interest each month and the full capital is still owed at the end.
Pay off your loan early if there are no early repayment charges. Make overpayments when you can. Choose a shorter term — a 3-year loan costs less interest than a 5-year loan even though monthly payments are higher. Shop around for the lowest APR.
Personal loan rates in the UK typically range from around 6% to 13% APR depending on the amount, term and your credit score. Larger loans (£7,500 to £15,000) usually attract the lowest rates. Rates above 20% APR are generally considered high.