Loan Calculator

Our loan calculator works for any fixed-rate instalment loan - personal loans, car finance, home improvement loans, or business borrowing. Enter your loan amount, interest rate, and term, and it instantly calculates your monthly payment, total repayment, and the total interest cost.

The three calculation modes cover every angle: find your monthly payment, discover how much you can borrow on a given budget, or reverse-engineer the interest rate from a known loan and payment amount. The amortisation schedule for the first 12 months shows exactly how your payments are structured from day one.

Use the result as a decision tool, not just a payment estimate. The monthly payment tells you whether the loan fits your cash flow, while the total interest figure shows what the borrowing really costs over the full term.

Suppose you borrow £10,000 over 5 years at an annual interest rate of 7%. The monthly payment is about £198, and the total repaid over the full term is roughly £11,880.

That means the interest cost is around £1,880. The loan may look affordable month to month, but the total interest number is what lets you compare it properly against a shorter term, a lower rate, or a larger deposit.

If the same loan is repaid over three years instead of five, the monthly payment rises, but the total interest usually falls. This is the core trade-off in most instalment loans: longer terms lower the monthly pressure but increase the lifetime cost.

Many borrowers focus only on the monthly payment because that is the number that affects the budget immediately. Lenders know this, which is why long terms can make expensive borrowing feel manageable. A payment that is £40 lower per month may cost hundreds or thousands more over time.

Total interest is the price of spreading repayment over time. It is affected by the rate, term, fees, payment schedule, and whether interest compounds monthly. When comparing loans, look at the monthly payment, total repaid, total interest, fees, and any early repayment rules together.

A common mistake is comparing loans by headline rate alone. Arrangement fees, broker fees, compulsory insurance, and early repayment charges can change the true cost. APR is designed to include mandatory costs, but it is still worth checking the full loan agreement.

Another mistake is borrowing the maximum possible amount simply because the payment fits today. A safer approach is to leave room for income changes, unexpected bills, rate changes on other debts, and emergency savings. A loan should fit your wider financial life, not just pass a monthly payment test.