Use this free UK personal loan calculator to see your monthly repayment, total interest and full cost of borrowing. Enter your loan amount, APR (Annual Percentage Rate) and term to get an instant breakdown. The most important figure when comparing personal loans is the representative APR — not the monthly payment, which varies with term length. In 2026, competitive personal loan rates start from around 6–7% APR for good credit. Covers car loan calculator, home improvement loans and debt consolidation calculator. Use a soft search eligibility checker before formally applying to avoid a hard credit check on your file. Instant results. No sign-up. Updated May 2026.
| Loan amount | 3 years | 5 years | 10 years | Total interest (5yr) |
|---|---|---|---|---|
| £3,500 | £108/mo | £69/mo | £41/mo | £658 |
| £4,000 | £124/mo | £79/mo | £47/mo | £752 |
| £5,000 | £154/mo | £99/mo | £58/mo | £940 |
| £7,500 | £232/mo | £149/mo | £87/mo | £1,410 |
| £9,000 | £278/mo | £178/mo | £105/mo | £1,692 |
| £10,000 | £309/mo | £198/mo | £116/mo | £1,881 |
| £21,000 | £649/mo | £416/mo | £244/mo | £3,950 |
| £26,000 | £803/mo | £515/mo | £302/mo | £4,890 |
| £30,000 | £927/mo | £594/mo | £348/mo | £5,643 |
| £33,000 | £1,020/mo | £654/mo | £383/mo | £6,207 |
| £40,000 | £1,236/mo | £792/mo | £465/mo | £7,524 |
| £60,000 | £1,854/mo | £1,188/mo | £697/mo | £11,286 |
| £85,000 | £2,626/mo | £1,683/mo | £988/mo | £15,988 |
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.
Most personal loans are unsecured — meaning they are not tied to any asset. You borrow a fixed amount, repay it in fixed monthly instalments, and if you default, the lender cannot automatically repossess your home or car. Unsecured loans are available up to around £25,000–£50,000 depending on the lender.
Secured loans (also called homeowner loans or second-charge mortgages) are tied to your property. Because the lender has security, they can offer larger amounts (£10,000–£250,000+) and longer terms (up to 25 years) at lower rates. However, your home is at risk if you cannot keep up repayments. Secured loans are subject to stricter regulation and require a property valuation.
| Unsecured personal loan | Secured loan | |
|---|---|---|
| Typical amount | £1,000 – £50,000 | £10,000 – £250,000+ |
| Typical term | 1 – 7 years | 3 – 25 years |
| Typical APR (good credit) | 6 – 12% | 5 – 10% |
| Asset at risk? | No | Yes — your home |
| Speed of approval | Same day – 48 hrs | 1 – 4 weeks |
| Best for | Car, home improvements, debt consolidation under £25k | Large home improvements, debt consolidation over £25k |
Personal loans can be used for almost any purpose. Lenders typically ask why you want the loan — not to judge you, but to ensure it is appropriate. The most common purposes and typical amounts borrowed are: