Calculate your monthly repayment, total interest and the real cost of borrowing — for any loan amount, rate and term.
A personal loan is a fixed amount borrowed at a fixed interest rate, repaid in equal monthly instalments over an agreed term. The key figure to compare is the APR (Annual Percentage Rate) — not the monthly payment, which can be misleading across different term lengths. In 2026, best personal loan rates start from around 6–7% APR for good credit. On a £10,000 loan at 7% APR over 5 years, monthly repayments are approximately £198/month with total interest of around £880. On a £5,000 loan at 9% APR over 3 years, monthly repayments are approximately £159/month. Longer terms reduce monthly payments but increase total interest paid. Under UK law, you can repay early with a maximum charge of 58 days' interest.
The monthly payment is only part of what a loan costs. Here's how to understand the real cost of borrowing and what to look for when comparing loans.
Personal loans use an amortisation formula — each payment covers interest on the outstanding balance plus a portion of the principal. Early payments are mostly interest; later payments are mostly capital.
Shorter terms mean higher monthly payments but significantly less total interest. Longer terms reduce monthly payments but increase the total cost. Use the calculator to find the balance that works for your budget.
APR (Annual Percentage Rate) is the legally required comparison figure in the UK. It includes the interest rate plus any mandatory fees, making it the only fair way to compare loans across different lenders.
Lenders advertise a "representative APR" which at least 51% of accepted applicants receive — you may be offered a higher rate depending on your credit profile. Always check your personal rate offer before committing.