Loan Repayment Calculator
Work out the monthly repayment, total cost and total interest on a personal or car loan for any amount, rate and term.
% per year
years
Monthly repayment
£198.01
Over 60 payments
- Total repaid
- £11,881
- Total interest
- £1,881
How are loan repayments calculated?
A personal or car loan is usually repaid in equal monthly instalments using the same annuity formula as a mortgage. Each payment covers the interest for that month plus a slice of the amount you borrowed, so the balance falls a little faster every month.
The three things that set your payment are the amount borrowed, the interest rate (APR) and the term in months or years. A longer term lowers the monthly payment but increases the total interest you pay overall.
APR and the true cost of borrowing
The advertised APR includes interest and most compulsory fees, which makes it the fairest way to compare loans. Remember that the lowest advertised rate is a "representative" APR that only 51% of accepted applicants need to receive, so your actual rate can be higher.
Comparing the total interest across different terms shows the real cost. Paying a loan off faster, where allowed, usually saves a meaningful amount of interest.
Worked example
Borrowing £10,000 over 5 years at 7% APR costs about £198 a month.
Over the full term you would repay roughly £11,881, of which around £1,881 is interest.
Please note: Estimates only, not a loan offer or financial advice. Your actual rate depends on the lender and your circumstances.
Frequently asked questions
Does this work for car finance?
Yes, for a standard repayment loan such as a personal loan or hire purchase. It does not model PCP deals, which include a large optional final balloon payment.
Is the rate the APR?
Enter the APR for the closest estimate. APR includes interest and most fees, so it reflects the true annual cost.
Are fees included?
The calculation covers the loan repayment only. Arrangement fees or add-ons are separate, though APR already accounts for most compulsory fees.
Can I reduce the interest I pay?
A shorter term or overpayments (where your agreement allows) reduce the total interest. Always check for early repayment charges first.
Is this a loan offer?
No. It is an estimate to help you compare and budget. Actual rates depend on the lender and your credit profile.
Figures last reviewed on 13 August 2025.
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