Personal Loan Calculator

The monthly repayment is fixed for the whole term of an unsecured personal loan. Total cost of borrowing is the figure that actually matters when comparing offers: interest plus the arrangement fee, i.e. everything you pay above the amount you received. Two loans with the same headline rate can differ by hundreds once a fee is added.

Why this one is different

Four numbers are reported side by side — monthly repayment, total interest, the arrangement fee and the total cost of borrowing — rather than a monthly figure with everything else folded away. Keeping the fee on its own line is what lets you see which part of the cost is the rate and which part is the paperwork.

Reading the small print

The advertised rate is only offered to about half of applicants

Lenders advertise a representative APR that they only have to give to 51% of successful applicants. If your credit file is thinner than that, the rate you are actually offered can be several points higher — which is why the quote you receive may not match the advert.

Use an eligibility checker that runs a soft search before you formally apply. Hard searches leave a footprint, and a run of them in quick succession makes the next lender more cautious.

How it works

A personal loan is unsecured: nothing is pledged as collateral, so the rate reflects your credit profile rather than an asset. Repayments are level for the term, calculated so the balance clears exactly on the final payment. Any arrangement fee is added on top here rather than rolled into the balance.

How to use this calculator

Choose your currency.
Enter the loan amount you need.
Set the interest rate you have been quoted and the term.
Add any arrangement fee.
Compare the total cost of borrowing between offers, not the monthly figure.

Formula

M = P · r(1+r)ⁿ ÷ ((1+r)ⁿ − 1)

P = loan amount, r = monthly rate (annual ÷ 12), n = number of payments. Cost of borrowing = total interest + fees.

Example calculation

A £10,000 loan at 9.9% over 4 years:

Monthly repayment ≈ £253
Total interest ≈ £2,151
Total paid ≈ £12,151

Frequently asked questions

Can I repay a personal loan early?＋

Usually yes. Regulated lenders must let you settle early, but they may charge up to about two months of interest as an early-settlement fee. Ask for a settlement figure in writing before you pay.

Why is my quoted rate higher than the advert?＋

The advertised figure is a representative APR, which only has to be given to just over half of accepted applicants. Your own rate depends on your credit history, income and how much you are borrowing.

Is a personal loan cheaper than a credit card?＋

Usually, for a planned purchase repaid over a fixed period. Cards win only when you can clear the balance inside a genuine 0% promotional window.

Does applying for several loans hurt my credit score?＋

Full applications leave a hard search on your file, and several in a short period look like distress borrowing. Most lenders now offer an eligibility check using a soft search, which is invisible to others and gives you an indicative rate. Use soft searches to shop around and apply properly only once.

Is a longer term ever the right choice?＋

It can be, if the shorter term would leave you unable to cover an unexpected cost and reliant on more expensive credit. The longer term costs more in total interest, so treat it as buying breathing room rather than a saving — and overpay when you can, if the agreement allows it.

What is the difference between secured and unsecured?＋

An unsecured loan is lent against your creditworthiness alone. A secured loan is tied to an asset, usually your home, which the lender can take if you default. Secured rates are lower precisely because the risk has moved to you, and that trade should never be made casually.