How to use our Loan Repayment Calculator

Figure out what your monthly payments will be depending on amount borrowed, interest rate, and loan term

When taking out a personal loan, the amount that you repay each month will depend on how much you’ve borrowed, how long for, and what the interest rate is. It’s important to understand all of this before taking out the loan so that you can make sure it is affordable and you’ll be able to keep up the repayments. Our Loan Repayment Calculator can be used to work this out.

How to use the Loan Repayment Calculator

To use our Loan Repayment Calculator, simply enter your info:

  1. Amount borrowed
  2. Interest rate (APR)
  3. Duration of borrowing

Once you have entered your details the calculator will tell you how much your monthly repayments will be.

Q: What is APR?

A: It stands for Annual Percentage Rate. It lets us compare the cost of borrowing across different loans from different banks. It accounts for the interest rate and any other charges applied to take out the loan.

Loan example 1

Let’s consider a loan of £5,000 at 6% APR, borrowed for 5 years.

If we enter this into the calculator, we will see that the monthly repayments are £96.

The total amount to be repaid comes to £5,777.

If we subtract the amount borrowed from this, we can work out the total amount of interest:

Interest paid = total amount repaid - amount borrowed

Interest paid = £5,777 - £5,000

Interest paid = £777

Loan example 2

Let’s consider a loan of £5,000 at 6% APR, borrowed for 10 years.

If we enter this into the calculator, we will see that the monthly repayments are £55.

The total amount to be repaid comes to £6,613.

If we subtract the amount borrowed from this, we can work out the total amount of interest:

Interest paid = total amount repaid - amount borrowed

Interest paid = £6,613 - £5,000

Interest paid = £1,613

Summary

These two examples show how borrowing the same amount at the same APR can result in different repayments. Borrowing over a longer period of time will lower the monthly repayments, but increase the total interest paid. Use our Loan Repayment Calculator to work out what your repayments might be.

This does not constitute financial advice. Always do your own research.

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