UK personal loan repayment.
Monthly repayment
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Total interest
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Total paid
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Your breakdown
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Worked example
Borrow £10,000 over five years at a representative 8.5 percent APR. The amortising formula gives a monthly repayment of about £205. Across the 60 payments you hand back roughly £12,310 in total, of which about £2,310 is interest and £10,000 is the original capital. Early payments are mostly interest because it is charged on the full balance, while later payments chip away more capital as the balance shrinks. A shorter three-year term would raise the monthly payment but cut the total interest sharply, the classic trade-off between affordability today and cost overall.
How it is calculated
The monthly repayment comes from the standard amortising loan formula, which spreads the capital and interest into equal payments across the term. The APR you enter is converted to a monthly rate by dividing by twelve, then the formula solves for the fixed payment that clears the balance over the chosen number of months. Total interest is simply the sum of all payments minus the amount you borrowed. Lenders advertise a representative APR, the rate offered to at least 51 percent of accepted applicants, so the rate you are actually quoted can be higher depending on your credit profile. The figure here also assumes no arrangement fee and a constant rate, so always check your personalised quote and the total amount payable before signing.