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Loan calculator

Estimate monthly repayments, total repayable and total interest for a fixed-rate loan.

Loan amount

APR

Loan term

Estimate only. Uses the APR entered, equal monthly payments starting one month after borrowing and no extra fees. Actual repayments depend on payment dates, fees, credit status and lender terms.

Estimated monthly repayment

£0

Total repayable£0
Total interest£0
Loan term5 years

What your result means

Explore the relationship between the amount borrowed, a repayment term and monthly cost. Check both the monthly payment and the total interest before comparing actual offers.

Compare scenarios by changing one input at a time. The glossary explains the technical words used on this page.

Estimated monthly repayment: The equal monthly payment calculated from the loan, APR and term using the stated no-fee assumptions.
Total repayable: All calculated monthly payments added together. It includes the original loan and interest; no additional fees are added.
Total interest: Total repayments minus the original loan under this no-fee model.
Loan term: The selected repayment period, not a promised product term.

This is an APR-based illustration assuming no additional fees and equal monthly payment intervals. Actual quotes can differ because of payment dates, fees, rounding and agreement terms. It is not an offer or an eligibility check.

Methodology: how the calculation works

The tool converts the entered APR into an equivalent monthly rate for a loan with no additional fees. It then uses amortisation: equal monthly payments cover interest and gradually repay the amount borrowed.

Read the loan amount and multiply the selected years by 12 to obtain the number of repayments.
Divide APR by 100, add 1, take the twelfth root and subtract 1. This gives the monthly rate whose compounding over 12 months matches the entered APR for the assumed no-fee schedule.
Calculate equal month-end capital-and-interest payments. At a zero rate, divide the amount borrowed equally across the months.
Multiply the unrounded monthly payment by the number of months for total repayments. Subtract the original loan for total interest.

See the calculation formula

r = (1 + APR ÷ 100)^1/12 − 1
M = P × r ÷ (1 − (1 + r)⁻ⁿ)

APR is the entered annual percentage rate, r is its equivalent monthly rate under this no-fee model, P is the loan, n is the number of monthly payments and M is the monthly repayment. The power 1/12 finds the monthly rate that compounds to the entered annual rate. The power −n discounts payments across the term. At 0%, M = P ÷ n.

The assumptions behind your estimate

The entered rate stays unchanged for the full term, not just an initial deal period. The pre-filled rate is an illustration, not a live offer.
Payments occur at the end of each month. Daily interest, irregular dates, missed payments and changes of rate are not modelled.
Money is displayed to the nearest pound. Totals use unrounded calculations, so multiplying the displayed payment by the number of months can differ from the displayed total.
The full loan is advanced at the start and repayments begin one month later. Months are treated as equal periods, with 12 payments per year.
No additional fees are modelled. The APR entered is used to derive the monthly rate for that no-fee payment schedule; the tool does not reconstruct a lender’s fees from an advertised APR.
No change of payment amount, payment holiday or early settlement is modelled. The term options are calculation choices, not proof that a provider offers those terms.

Two simple worked examples

Both examples borrow £10,000 at an illustrative 8.9% APR with no additional fees. Compare three years with five years, assuming equal month-end repayments.

Worked example

Repay over three years

£10,000 borrowed · 8.9% APR · 3 years

£316

illustrative monthly repayment

Total repayable: £11,374
Total interest: £1,374
Loan term: 3 years

Worked example

Repay over five years

£10,000 borrowed · 8.9% APR · 5 years

£205

illustrative monthly repayment

Total repayable: £12,326
Total interest: £2,326
Loan term: 5 years

A closer look: amount, term and rate

Begin with £10,000, then change one input at a time. Each row uses the stated APR with no additional fees and equal monthly payment intervals.

On a small screen, swipe the table sideways to see every figure.

Loan: illustrative scenarios
Scenario	Inputs and assumptions	Estimated monthly repayment	Total repayable	Total interest
A · Starting point	£10,000 borrowed · 8.9% APR · 5 years	£205	£12,326	£2,326
B · Borrow £15,000	£15,000 borrowed · 8.9% APR · 5 years	£308	£18,489	£3,489
C · B over three years	£15,000 borrowed · 8.9% APR · 3 years	£474	£17,061	£2,061
D · C at 12.9%	£15,000 borrowed · 12.9% APR · 3 years	£500	£17,986	£2,986

Borrowing more raises payments at the same rate and term. Shortening the term raises the monthly commitment but reduces total interest at a positive rate. A higher rate adds cost even when the amount and term do not change.

Examples use the stated assumptions and the calculator’s rounding. They are illustrations, not product offers, personalised recommendations or guarantees.

What the estimate does not include

A lender-specific repayment quotation, actual calendar payment dates and any fees or charges not represented by this no-fee model.
Early settlement, missed payments, changes of rate and repayment holidays.
Credit status, eligibility and affordability checks. A displayed result is not an approval or offer.

Loan glossary: the words explained

Plain-English definitions of the finance, calculation and technical terms used on this page. Dotted links take you directly to the relevant definition.

Affordability / affordability check: An assessment of whether payments fit income, spending and other financial commitments. This tool does not perform that assessment.
Amortisation: Paying off borrowing gradually through regular payments covering interest and some capital. With a constant rate and payment, the interest share reduces as the balance falls.
Annual / monthly rate: Annual means per year; monthly means per month. A monthly rate is not interchangeable with an annual rate. The methodology explains this tool’s conversion.
APR (annual percentage rate): A measure of the annual cost of borrowing that includes interest and applicable compulsory charges, using specified calculation rules. This tool converts the entered APR into a monthly rate for its stated no-additional-fee assumptions; it cannot identify a lender’s individual fees from APR alone.
Arrangement fee / product fee / lender fee: A charge for setting up or providing a financial product, separate from interest. A percentage fee needs a stated base amount.
Balance / outstanding balance: The money held in an account, or the amount still owed on a loan, at a given time.
Balloon / final capital payment: A larger amount left to pay at the end of a finance agreement. It is separate from the regular instalments.
Broker / credit broker / broker fee: A business that introduces customers to finance providers or helps arrange finance, rather than lending the money itself. A broker fee is a charge for that service.
Capital / principal / amount borrowed: The original money borrowed, separate from interest. Paying back capital reduces the outstanding loan.
Compounding / compound interest: Adding interest or investment growth to a balance so that it can itself earn interest or growth in later periods.
Credit / finance / borrowing: Money made available to borrow and repay later, usually with interest or charges.
Credit check / credit status / credit history: A check of information about past borrowing and repayments, and the financial record it describes. Providers may use it when assessing an application.
Discounting / present value: Allowing for the timing of future payments when expressing them as a value at the start. It is a calculation step, not a price reduction or promotional offer.
Early repayment charge / early settlement charge: A charge that may apply when some or all of borrowing is repaid ahead of schedule. The agreement sets out any conditions and limits.
Eligibility / lender criteria: The requirements a provider sets for an application. A calculated repayment does not show that an applicant qualifies.
Estimate / illustration / projection: A result based on stated inputs and assumptions, not a promise of what will happen or a provider’s offer.
Financial Conduct Authority (FCA) / authorised and regulated: The UK financial-services regulator named in the site footer. Authorisation gives a firm permission for specified activities; regulation means it must follow the applicable rules.
Fixed rate / deal period: A fixed rate stays unchanged for an agreed period. That period may be shorter than the whole loan term.
Interest / interest rate: Interest is a charge for borrowing or a return paid on savings. The rate expresses it as a percentage over a stated period.
Lender / provider: The organisation supplying a loan or financial product and setting its terms.
Methodology: The calculation method, steps and assumptions behind an estimate.
Payment holiday: An agreed temporary pause or reduction in payments. It can affect the balance and cost and is not included here.
Payment schedule / equal monthly intervals: The planned timing and number of repayments. Here each payment is one equal monthly period apart, beginning one month after borrowing.
Quote / finance offer: Proposed prices and conditions from a provider. It is different from an illustration and may still depend on checks or conditions.
Repayment / monthly payment: Money paid back to a lender. A capital-and-interest payment covers interest and reduces the amount borrowed. An interest-only payment does not reduce it.
Rounding / unrounded: Shortening a number for display. An unrounded calculation keeps the more precise value when working out totals.
Term / repayment period: The length of time over which the calculation runs. For borrowing, it is the planned repayment period, not necessarily the length of an introductory rate deal.
Total interest: All the interest in the calculation, excluding the original loan and any separately stated fees.
Total repayable / total payable: The combined amounts counted by this tool. Read the results explanation to see whether fees, deposits or a final capital payment are included.
Twelfth root / power: A twelfth root is a number that gives the original value when multiplied by itself 12 times. A power describes repeated multiplication or its inverse. These operations convert the annual rate and account for payment timing in the formula.
Upfront fee / upfront payment: Money paid at the start instead of added to the loan or paid at the end.

Frequently asked questions

Will this match a lender’s APR quote exactly?

Not necessarily. It converts APR into monthly repayments for a no-fee schedule with equal monthly intervals. A provider’s exact payment dates, charges and rounding can produce different figures. Compare the provider’s own repayment schedule and total repayable.

Does a longer term make a loan cheaper?

It reduces the monthly payment in this model but increases total interest at the same positive APR. Compare both figures.

Are fees included?

There is no separate fee input or fee addition. APR can include compulsory charges, but the tool assumes a no-fee repayment schedule and cannot recover a provider’s fee structure from APR alone.

Will I qualify for the displayed payment?

The tool does not check income, spending, credit history or lender requirements. It cannot confirm eligibility.

Can I compare different loan types here?

It models regular capital-and-interest repayments with no final balloon payment. Other repayment structures and variable rates need their own assumptions.

Explore your next step

Use an illustration to explore a manageable budget, then compare the provider’s actual monthly repayments, APR, fees and total repayable.

About this explanation. The methodology describes this calculator. Worked examples were checked against its calculation and an independent calculation. This is general information, not a professional recommendation or formal compliance approval.

Further reading from MoneyHelper and government sources: