Personal loan calculator
Work out your monthly repayment, total interest and true cost of borrowing on any personal loan. Compare how different rates and terms affect what you pay, and see a full year-by-year repayment schedule. UK 2025 rates.
Before applying for a personal loan, check your credit report. Lenders use it to decide whether to approve you and at what rate. Applying with a poor score or multiple recent applications can push your rate up significantly or result in a rejection which itself further damages your score. Take ten minutes to check your score for free with a soft search service before you apply anywhere.
Representative APR explained
Lenders advertise a representative APR that only 51% of successful applicants need to receive. The other 49% may be offered a higher rate based on their credit profile. Always check the rate offered to you specifically, not just the headline rate in the advert.
Shorter term costs less overall
A shorter loan term means higher monthly payments but significantly less total interest paid. A 2-year loan at 8.9% costs much less than a 5-year loan at the same rate, even though the monthly payment feels higher. The rate comparison table above shows the difference.
Loan amount brackets
Many lenders charge lower rates for larger loan amounts. Borrowing £7,500 is often cheaper in APR terms than £6,000 with the same lender. If you need £6,500, it is worth checking whether borrowing £7,500 would actually cost you less in total interest.
Early repayment
Most personal loans allow early repayment but may charge an early repayment fee of up to 1 to 2 months interest. Check the terms before signing. Even with a small early repayment charge, paying off a loan ahead of schedule usually saves money overall.
Please note: This calculator is for illustrative purposes only. Monthly repayment figures are based on a standard fixed-rate personal loan calculation. Actual rates depend on your credit profile, the lender and the loan amount. Always check the full cost of a loan including any arrangement fees before applying. Some links on this page may be affiliate links. This is not financial advice.
What does the personal loan calculator do?
The personal loan calculator calculates the fixed monthly repayment and the total interest paid over the full term. Personal loans are unsecured fixed-term borrowing – unlike credit cards, the rate is fixed at the outset, and the balance clears at a known date.
How to use this calculator
Loan amount: The amount you want to borrow.
Interest rate (APR): The representative APR quoted by the lender. Note that the representative APR is offered to at least 51% of successful applicants – you may be offered a higher rate depending on your credit profile.
Loan term: The repayment period in months or years. Most personal loans offer terms of one to seven years. A longer term reduces the monthly payment but significantly increases the total interest.
Reading the result: The calculator shows the monthly repayment, total repaid, and total interest cost. Compare the total interest against the benefit of the loan to decide whether borrowing makes sense.
When personal loans make sense
Personal loans are appropriate for financing specific, defined costs where you want a fixed repayment schedule and a known end date — home improvements, a car purchase, or a significant one-off expense. They are less appropriate as a general cash buffer (use an emergency fund instead) or for ongoing expenditure that does not have a defined end cost.
Frequently asked questions
What is the difference between APR and interest rate? APR (annual percentage rate) includes the interest rate plus any mandatory fees, expressed as an annual percentage. For most personal loans, the APR and interest rate are effectively the same, as there are typically no mandatory fees. Always compare using APR.
Will applying for a personal loan affect my credit score? A full loan application involves a hard credit search, which temporarily reduces your score slightly and remains on your file for 12 months. Many lenders now offer an eligibility check using a soft search (no credit impact) that shows you the likely rate before you apply.
Is a personal loan or a credit card better for a large purchase? A personal loan offers a fixed rate, fixed term, and structured repayment — appropriate for a specific large purchase where you want certainty. A 0% purchase credit card is better if you can clear the balance within the 0% period — the total cost is lower. If you cannot clear it within the 0% period, the rate reverts to typically 20%+, which is often higher than a personal loan rate.
The information on this site is for educational and informational purposes only. Nothing on Be More Peter constitutes financial advice, and nothing should be treated as such. The calculators, articles and tools on this site are designed to help you understand financial concepts and run indicative numbers - they are not a substitute for professional advice tailored to your specific circumstances. Before making any financial decision - including decisions about mortgages, pensions, investments, savings or insurance — you should seek independent financial advice from a qualified adviser who is authorised and regulated by the Financial Conduct Authority (FCA). Calculator results are estimates based on the information you enter and the assumptions built into the tool. They are illustrative only and should not be relied upon as accurate projections. Rates, thresholds and rules change regularly - always verify figures with an appropriate professional or official source before acting on them. Be More Peter is not authorised or regulated by the FCA. The content on this site does not constitute a financial promotion.
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