Whether it's a personal loan, car finance or a business loan, this free calculator shows your monthly payment, the total you'll repay and how much of that is interest. Enter the amount, rate and term — no signup required.
How the loan calculator works
What affects your monthly loan payment?
Three variables drive every loan payment: the amount borrowed (principal), the annual percentage rate (APR) and the term length. A lower APR or a shorter term both cut your total interest cost, but they work in opposite directions on the monthly payment. Borrowing £20,000 over five years shows the difference APR alone makes:
Loan example
Monthly payment
Total interest
Total repaid
£20,000 over 5 years at 6% APR
£386.66
£3,199
£23,199
£20,000 over 5 years at 9% APR
£415.17
£4,910
£24,910
£20,000 over 5 years at 12% APR
£444.89
£6,693
£26,693
Stretching the same loan to seven years would lower the monthly figure but add substantially more interest over the life of the loan. Use the calculator above to compare terms side by side before you commit.
Practical ways to reduce interest cost
Shorten the term if you can afford it. Payments rise, but total interest drops sharply. Make occasional overpayments. Most personal and auto loans allow penalty-free overpayments, and each one goes straight to the principal. Improve your credit profile before applying. Even a 1-2% APR difference is worth thousands on a long loan. Finally, check whether quoted rates are representative (the rate advertised to at least 51% of successful applicants) — the rate you are actually offered may be higher.
Embed this calculator
Copy the code below to add this free calculator to your website or blog. No signup, no branding inside the tool.
The embed adapts to your page width and works on any CMS — WordPress, Squarespace, Wix, Ghost, plain HTML.
Enter the loan amount, the annual interest rate (APR) and the number of months.
The calculator applies the standard amortisation formula used by banks to compute the fixed monthly instalment.
You see the monthly payment plus the total repaid and total interest over the whole term.
Compare different terms — a shorter term means higher payments but much less interest.
Frequently asked questions
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal; APR also includes mandatory fees, giving a truer cost of the loan. Always compare loans using APR.
Last updated: October 2026.
Is a shorter or longer loan term better?
A shorter term has higher monthly payments but lower total interest. Use the calculator with two different terms to see the total interest difference yourself.
Does this work for car loans?
Yes — enter the amount financed, the dealer's APR and the term in months (36, 48, 60, 72). The maths for car loans is the same as personal loans.
Can I pay a loan off early?
Most loans allow early repayment, and some charge a prepayment penalty. Paying early saves interest — ask your lender about penalty-free overpayments before signing.
Estimates are for guidance only and are based on published 2026/27 rates. Always confirm with a qualified professional for financial decisions.