UK Personal Loan Calculator 2026
Work out the monthly payment, total repayment and total interest on a UK unsecured personal loan. Enter the amount you want to borrow, your interest rate and the term in months — the calculator uses the standard fixed-instalment annuity formula and works in pounds sterling. Free, instant, no signup.
Your personal loan repayment
- Monthly payment£197.54
- Total repayment (all payments)£11,852.43
- Total interest£1,852.43
- Number of payments60
How it's calculated
A UK personal loan is unsecured credit: you borrow a fixed lump sum and repay it in equal monthly instalments over a set term, with interest, so the balance reaches zero on the final payment. Each instalment is split between interest on the outstanding balance and capital — early on most of the payment is interest, and as the balance shrinks more of each instalment chips away at the capital. The fixed payment is worked out with the annuity formula. Three figures drive it: the amount you borrow, the term in months, and the interest rate, which the calculator converts to a monthly rate by dividing the annual rate by 12. A higher rate or a longer term both raise the total interest you pay, but a longer term lowers the monthly payment — so stretching a loan to make it affordable each month usually means paying more overall. One distinction matters when you shop around: the rate you enter here is the interest rate that sizes your payment, not the Representative APR the lender advertises. Under the FCA's CONC rules, the Representative APR is an all-in annualised cost (interest plus any compulsory fees) that at least 51% of accepted applicants must receive; the other 49% can be offered a higher personalised rate after their credit check. For a fee-free loan the interest rate and APR are usually the same. This is general information for the whole UK and not financial advice.
i = annual rate ÷ 100 ÷ 12 (monthly interest rate)
n = term in months (number of payments)
M = P × i × (1 + i)^n / ((1 + i)^n − 1)
If i = 0: M = P ÷ n
Total repayment = M (unrounded) × n
Total interest = Total repayment − PWorked example
Borrow £10,000 at an interest rate of 6.9% over a 5-year (60-month) term — the calculator's default inputs:
| Amount borrowed (P) | £10,000.00 |
| Number of payments (n)5 years × 12 months | 60 |
| Monthly interest rate (i)6.9 ÷ 100 ÷ 12 = 0.00575 | 0.575% |
| Growth factor (1 + i)^n1.00575 to the power of 60 | 1.41059544 |
| Monthly payment (M)10000 × 0.00575 × 1.41059544 ÷ (1.41059544 − 1) | £197.54 |
| Total repaymentunrounded £197.5405… × 60 | £11,852.43 |
| Total interest£11,852.43 − £10,000 | £1,852.43 |
You repay £197.54 a month, £11,852.43 in total, of which £1,852.43 is interest — about 18.5% on top of the capital over five years. Note the total uses the unrounded monthly payment: rounding to £197.54 first and multiplying by 60 gives £11,852.40, a few pence out.
When your result may differ
Your actual loan can cost more than this estimate for several reasons. The figure you should compare lenders on is the Representative APR, not the headline interest rate: if the loan carries an arrangement or product fee, the APR is higher than the interest rate, and this calculator does not add fees. Because of the FCA's 51% rule, the rate you are actually offered after a credit check may be higher than the advertised rate if your credit profile is weaker. Rates are also tiered by loan size — mid-range amounts (often £7,500–£15,000) attract the best rates, while very small or very large loans can cost more per pound. If you repay early, the Consumer Credit Act 1974 and the Early Settlement Regulations 2004 let the lender keep up to about 58 days' interest as a settlement adjustment, so the saving is slightly less than all the remaining interest. Finally, missed payments can trigger default charges and harm your credit score, raising the real cost above the schedule shown here.
Rates and thresholds
Typical features of a UK unsecured personal loan in 2026. Rates and limits vary by lender and credit profile.
| Feature | Typical range | Notes |
|---|---|---|
| Amount | £1,000 – £25,000 (up to ~£50,000) | Smaller sums may suit a credit card or overdraft instead |
| Term | 1 – 7 years (12 – 84 months) | Longer term = lower monthly payment but more total interest |
| Pricing basis | Representative APR | All-in cost; at least 51% of accepted applicants must receive it |
| Security | None (unsecured) | No asset at risk, unlike a mortgage or secured loan |
| Early repayment | Up to ~58 days' interest | Settlement adjustment under the Consumer Credit Act 1974 |
Sources & legal basis
| Source | What it covers | Last checked |
|---|---|---|
| FCA Handbook — CONC 3 (Financial promotions) | Representative APR and the 51%-of-applicants rule | |
| Consumer Credit Act 1974 — Part VII (early payment) | Borrower's statutory right to settle a regulated agreement early | |
| The Consumer Credit (Early Settlement) Regulations 2004 | Actuarial method and the up-to-58-days settlement adjustment | |
| MoneyHelper — Personal loans | Consumer guidance on amounts, terms and comparing APRs |
Update log
- — Updated default inputs and rate guidance for 2026.
- — Added how-it-works explanation, line-by-line worked example, features table and a source table citing the FCA Handbook and the Consumer Credit Act.
- — Aligned term guidance with the calculator's 84-month maximum and the features table.
Frequently asked questions
How is a UK personal loan monthly payment calculated?
A personal loan uses the annuity formula M = P × i × (1+i)^n / ((1+i)^n − 1), where P is the amount borrowed, i is the monthly interest rate (the annual rate divided by 12 and by 100) and n is the number of monthly payments. The payment is the same every month, which makes budgeting easy. For example, £10,000 at 6.9% over 5 years gives 60 payments and a monthly payment of £197.54. If the rate is 0% the payment is simply the loan divided by the number of months — £10,000 over 60 months would be £166.67.
What's the difference between the interest rate and the Representative APR?
The interest rate is what sizes your monthly payment, and it's the figure you type into this calculator. The Representative APR is the lender's standardised, all-in annualised cost — interest plus any compulsory fees. Under FCA CONC rules and the Consumer Credit Act, at least 51% of accepted applicants must actually receive the advertised Representative APR; up to 49% can be offered a higher personalised rate based on their credit profile, so the rate you're quoted may differ from the headline. For a fee-free personal loan the interest rate and the APR are usually equal or very close. Always use the Representative APR to compare deals.
What's the difference between a personal loan and a mortgage (unsecured vs secured)?
An unsecured personal loan is what this calculator models: a smaller lump sum (often £1,000–£25,000, up to about £50,000), repaid over a short term of typically 1–7 years, with nothing pledged as security. A mortgage is a secured loan — large, repaid over 25–40 years, and backed by your property, which the lender can repossess if you default. Secured loans against your home or car work the same way and carry the same repossession risk. The annuity maths is identical for all of them; the difference is the amount, the term and whether an asset is at stake.
What is total repayment and total interest?
Total repayment is everything you'll pay over the whole term — the unrounded monthly payment multiplied by the number of payments. Total interest is that figure minus the amount you borrowed: it's the cost of the loan on top of the capital. In the worked example (£10,000 at 6.9% over 5 years), the total repayment over 60 payments is £11,852.43 and the total interest is £1,852.43. Note we multiply the unrounded monthly payment by 60; rounding the monthly figure to £197.54 first and then multiplying would give £11,852.40 — a small error of a few pence.
Can I repay a personal loan early or overpay?
Usually yes. Overpaying or settling early reduces the outstanding balance and cuts the total interest you pay. However, the Consumer Credit Act allows lenders to apply an early-settlement adjustment of up to around 58 days' interest — effectively an early repayment charge — so the saving may be slightly less than the full remaining interest. Check your agreement and ask the lender for a settlement figure before you pay it off, and remember that missing scheduled payments harms your credit score.
How can I get a lower rate and reduce the total interest?
The total interest falls if you borrow less, secure a lower interest rate, or choose a shorter term — though a shorter term raises the monthly payment. Rates are tiered by loan size: mid-range amounts (often £7,500–£15,000) tend to attract the best headline rate, while very small or very large loans can cost more. A stronger credit profile improves the personalised rate you're offered. Always compare the Representative APR rather than the headline interest rate, and remember this is general information, not financial advice.