Personal Loan Calculator

Use this calculator to work out your monthly loan repayments or find out how much you could afford to borrow based on your monthly budget.

Calculation Type

£1
£50k
£100k
0.1%
12.5%
25%
1yr
15yrs
30yrs

How does the loan repayment calculator work?

What This Calculator Does
  • Shows how much you can borrow
  • Calculates your monthly payments
  • Displays total repayment amount
  • Helps you understand the true cost of borrowing
Information You Need to Provide
  • Loan amount (how much you want to borrow)
  • Monthly payment amount (what you can afford)
  • Loan term (how many years)
  • APR (interest rate percentage)

How do I use the loan calculator?

Option 1: Calculate Monthly Repayments
  • Select "Calculate monthly repayments"
  • Enter loan amount
  • Enter loan term (years)
  • Enter interest rate (APR)
  • Click "Calculate"

Example:

Borrowing £12,000 over 5 years at 7% APR:
  • Monthly payment: £236.40
  • Total repayable: £14,182.93
  • Cost of loan: £2,183.93
Option 2: What Can I Afford?
  • Select "What can I afford?"
  • Enter monthly payment amount
  • Enter loan term (years)
  • Enter interest rate (APR)
  • Click "Calculate"

Example:

If you can pay £250 monthly for 5 years at 7% APR:
  • You can borrow: £12,690.42
  • Total repayable: £15,000
  • Cost of loan: £2,309.58

Tip:

Try different APR values to see how they affect your payments and total cost.

What does APR mean?

APR Explained
  • APR = Annual Percentage Rate
  • The yearly interest rate on your loan
  • Includes both interest and any mandatory fees
  • Gives you the total yearly cost of borrowing
  • The APR you actually get depends on your credit score

How are loan payments calculated?

Payment Calculation
  • Total loan amount + total interest
  • ÷ Number of months in loan term
  • = Your monthly payment

How long should my loan term be?

  • Shorter term: Lower total cost, but higher monthly payments
  • Longer term: Higher total cost, but lower monthly payments
  • Best choice: The shortest term you can comfortably afford

Example: Borrowing £10,000 at 7% interest with different loan terms:

Loan Term (Years)Monthly Repayment (£)Total Amount Repayable (£)Loan Cost (£)
3307.7911,080.401,080.40
519711,819.941,819.94
7149.8812,5892,589.74

What factors affect the loan repayment amount?

Key FactorsHow It Affects Your Loan

Loan Term

  • Longer term = Lower monthly payments
  • Shorter term = Higher monthly payments

APR

  • Higher APR = Higher monthly payments
  • Lower APR = Lower monthly payments
  • Your personal APR depends on your credit score

Credit Score

  • Better credit score = Lower APR offered
  • Poor credit score = Higher APR offered

How can I reduce the total cost of a loan?

Money-Saving Tips
  • Choose a shorter loan term - You'll pay less interest overall, even though monthly payments will be higher
  • Look for the lowest APR - Shop around to find the best interest rates available to you
  • Watch out for extra fees - Check for early repayment fees, arrangement fees, or other hidden charges
  • Make overpayments - If your loan allows it, paying extra when you can will reduce the total interest

Personal Loan Amount Limits

Loan TypeKey Information

Personal Loans

  • Usually up to £50,000
  • No collateral required
  • Based on your credit score and income

Secured Loans

  • Higher amounts available
  • Requires property as collateral
  • Warning: Your home may be at risk if you don't keep up repayments

Important:

Always make sure you can afford the repayments before taking out any loan.

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