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Personal Loan Calculator

Work out the monthly repayment, the total interest and the real APR of your personal loan, including any arrangement fee.

Typical UK rates 2026 Real APR with fees Fixed monthly repayments

Loan details

£
Repayment term
Loan term in years 5 years
Loan conditions

Typical personal loan rates in the UK in 2026 sit at around 6-7% for loans of £7,500-£15,000 (Bank of England). Most UK personal loans have no arrangement fee – set this field to 0 if your lender does not charge one.

Monthly repayment

£297.02
APR 7.91% · 60 repayments
Total interest£2,821.08
Arrangement fee£225.00
Total cost of the loan£3,046.08
APR7.91%
Total repayable£18,046.08

Note: Indicative calculation using the standard amortising method (constant monthly repayment). The APR shown includes the arrangement fee; the final terms depend on each lender and on your credit profile.

How a personal loan works

Understand every term before you sign: interest rate, APR, arrangement fee and the repayment method

Interest rate vs APR

The real cost of the loan

The annual interest rate is the plain percentage the lender charges on the money you borrow. The APR (Annual Percentage Rate) adds any fees and charges to that rate and reflects the true yearly cost. That is why, to compare loans, you should always look at the APR, not the headline interest rate.

Example
A £15,000 loan over 5 years at a 7% interest rate with a 1.5% arrangement fee has a real APR of 7.91%, almost a point above the interest rate.

Arrangement fee

One-off upfront cost

This is a percentage of the loan amount that some lenders charge to set the loan up. Most mainstream UK personal loans have no arrangement fee, but where one applies it is usually deducted from the money you receive or added to the balance. Even a small fee pushes the APR up noticeably, especially over short terms.

Example
A £15,000 loan with a 1.5% fee costs £225 upfront. Set the field to 0% if your lender, as is common in the UK, charges no arrangement fee.

Fixed monthly repayments

Amortising loan

Almost every personal loan in the UK is repaid on a capital-and-interest basis with a fixed monthly repayment. The monthly amount stays the same throughout, but its make-up changes: at the start you pay more interest and less capital, and towards the end it is the other way round.

Formula
Repayment = Capital × (i × (1+i)^n) / ((1+i)^n − 1), where i = interest rate/12 and n = number of repayments

The term: repayment vs total cost

The key trade-off

A longer term lowers the monthly repayment but pushes up the total interest. Personal loans in the UK usually run from 1 to 7 years (8-10 in some cases). Choose the shortest term whose repayment you can comfortably afford.

Example
£15,000 at 7%: over 3 years you pay £1,674 in interest; over 8 years, £4,633. Almost three times as much, just to bring the repayment down from £463 to £205.

Frequently asked questions about personal loans

We answer the most common questions before you take out a loan

According to Bank of England figures, typical rates on personal loans in the UK in 2026 sit at around 6-7% for amounts of £7,500-£15,000. With a strong credit profile (steady income, long employment history, no other debts) you can find offers from 5.5-6.5%. Smaller loans and shorter-term borrowing often carry higher APRs – always compare before you sign.
The interest rate is just the nominal rate applied to the capital. The APR also takes in any fees and the frequency of payments, expressing the true yearly cost of the loan. Two loans with the same interest rate can have very different APRs. Under the Consumer Credit Act 1974 and FCA rules, lenders must show a representative APR in advertising and in the agreement.
When a lender advertises a "representative APR", at least 51% of the customers who are accepted must receive that rate or a better one. The rest may be offered a higher APR depending on their credit profile, so the rate you are personally quoted can differ from the advertised one. Always check your individual quote, ideally one that does not leave a hard mark on your credit file.
Yes. Under the Consumer Credit Act 1974 and the Early Settlement Regulations 2004 you have the right to settle the loan in full or in part at any time. The lender may add an early settlement charge: up to 58 days' interest where more than 12 months remain on the agreement, and up to 28 days' interest where 12 months or less remain. Ask your lender for a settlement figure before you decide.
The lender may charge a late fee and will report the missed payment to the credit reference agencies (Experian, Equifax, TransUnion), which lowers your credit score and makes future borrowing harder. If you fall far enough behind, the lender can issue a default notice under the Consumer Credit Act and demand the whole balance. If you see trouble coming, contact the lender before you miss a payment: it is often possible to agree a new term or a payment holiday.
A personal loan pays out the whole amount at once and is repaid in fixed instalments: it is cheaper and suited to a specific purchase (a car, home improvements). A credit card or an overdraft lets you draw money as you need it and pay interest only on what you use, but at much higher rates (cards often exceed 20-25% APR, and arranged overdrafts around 40% EAR). For a defined amount, a personal loan is almost always cheaper.
Always compare the APR for the same amount and the same term, not the headline interest rate. Check any arrangement fee, optional add-ons (payment protection, insurance) that affect the cost, and the early settlement charge. Each lender must give you the pre-contract credit information (SECCI) form: it is required and lets you compare offers on a like-for-like basis.

Personal loan calculator: work out the repayment, interest and APR in 2026

This personal loan calculator works out the monthly repayment using the standard amortising method – the approach used by virtually every bank and lender in the UK for personal and repayment loans. Unlike other loan calculators that only show the interest rate, here you also get the real APR including any arrangement fee, which is the figure that genuinely lets you compare offers.

Enter the amount, the term, the interest rate and any arrangement fee, and the calculator returns the monthly personal loan repayment, the total interest, the total cost and the total repayable. According to Bank of England data, typical rates on consumer loans sit at around 6-7% in 2026, which is the value we use by default.

The repayment formula: amortising loan

Repayment = Capital x (i x (1 + i)^n) / ((1 + i)^n - 1)

Where: i = monthly rate (interest rate/12), n = number of repayments (years x 12)

Worked example: a £15,000 loan

Loan amount

£15,000

Term

5 years (60 repayments)

Rate / fee

7.00% / 1.50%

Monthly repayment

£297.02

Total interest: £2,821 | Arrangement fee: £225 | Total repayable: £18,046 | APR: 7.91%

Indicative table of personal loan repayments (7% interest rate)

Approximate monthly repayment by amount and term, calculated with the market interest rate of 7% and no fees. Notice how a longer term reduces the repayment but makes the loan more expensive:

Loan amount 3 years (36 repayments) 5 years (60 repayments) 8 years (96 repayments)
£10,000 £308.77 £198.01 £136.34
£15,000 £463.16 £297.02 £204.51
£20,000 £617.54 £396.02 £272.68
£30,000 £926.31 £594.04 £409.01

Early repayment: your rights under the Consumer Credit Act

The Consumer Credit Act 1974, together with the Early Settlement Regulations 2004, gives you the right to repay the loan in full or in part at any time, with the early settlement charge capped by law:

  • Where more than 12 months remain on the agreement Up to 58 days' interest
  • Where 12 months or less remain on the agreement Up to 28 days' interest
  • Ask the lender for a written settlement figure: it sets out the exact balance and any charge Your right

Tips for comparing personal loans

1

Compare the APR, not the interest rate

The APR includes fees and reflects the real cost. Always compare it for the same amount and the same term: the APR changes with both.

2

Watch out for the representative APR

Only 51% of accepted customers need to get the advertised rate. Get a personalised quote – ideally an eligibility check with a soft search – before you assume you will be offered it.

3

Ask for the pre-contract information

The pre-contract credit information (SECCI) form is required and sets out the terms, fees and APR in a format you can compare across lenders.

4

Don't borrow more than 30-35% of income

The total of all your repayments (loans, mortgage, cards) should not exceed 30-35% of your monthly net income.

5

Choose the shortest affordable term

Every extra year of term lowers the repayment but adds interest. Use the calculator to find the balance between a comfortable repayment and a reasonable total cost.

Disclaimer: This personal loan calculator provides an indicative estimate based on the standard amortising method. The actual terms (interest rate, APR, fees, add-ons) depend on each lender and on your credit profile. Sources: Bank of England interest rate statistics and the Consumer Credit Act 1974.

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