UK Personal Loan Calculator 2026
Calculate your monthly payment, compare rates by loan amount, and see exactly what early repayment saves you — with UK-specific APR rules and Consumer Credit Act protections.
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How to Use This Calculator
Tab "Loan Payment"
Enter your loan amount, representative APR, and term in years. The calculator instantly shows your monthly payment, total interest, and total repayable amount. The "Compare rates" section shows how different APRs affect your cost, so you can see the value of shopping around. Optionally add an arrangement fee if your lender charges one — it gets added to the principal.
Tab "Rate by Amount"
UK personal loan rates vary significantly by how much you borrow. Enter an amount and see the typical representative APR for that band. The cross-band comparison highlights a key insight: borrowing more can sometimes cost less in total. For example, borrowing £5,000 at 4.2% may cost less total interest than borrowing £4,500 at 5.5%, because the rate drops when you cross into the £5K-£10K band.
Tab "Early Repayment"
Already have a loan? Enter your outstanding balance, APR, current monthly payment, and a monthly overpayment amount. The calculator shows how many months you'll save, how much interest you avoid, and the maximum early settlement fee your lender can charge. Under the Consumer Credit Act 1974, the penalty is capped at 1 month of interest (or 2 months if more than 12 months remain).
The Formula
M = P × r(1+r)n / ((1+r)n − 1)
Where:
M = monthly payment
P = principal (loan amount + any fees)
r = monthly interest rate (APR / 12 / 100)
n = total number of monthly payments (years × 12)
Total repayable: M × n
Total interest: (M × n) − P
Example: £10,000 at 4.5% APR over 3 years (36 months)
r = 0.045 / 12 = 0.00375
M = 10,000 × 0.00375 × (1.00375)36 / ((1.00375)36 − 1)
M = £297.02/month
Total repayable = £10,693 | Total interest = £693
Example
Sarah -- Teacher in Liverpool
Sarah needs £10,000 for a home renovation. She has a good credit score (Experian 850+) and gets offered 4.5% representative APR over 3 years.
After 18 months, Sarah gets a bonus and wants to overpay £200/month. With overpayments, she clears the loan 8 months early, saving £148 in interest. The early settlement fee is capped at 1 month of interest (about £16) — so she nets £132 in real savings. If she settled the full remaining balance instead, she'd avoid all remaining interest minus the one-month penalty.
Sarah also considered borrowing £7,500 instead. At 4.2% (the £5K-£10K band rate), £7,500 over 3 years costs £222/month and £494 total interest. But if she'd only borrowed £4,500, she'd have been in the £3K-£5K band at 5.5% — paying £136/month and £383 interest. Per pound borrowed, the cheaper band is better value.