Frequently Asked Questions
How do I calculate my monthly loan payment?
Enter your loan amount, annual interest rate (APR) and loan term above. The calculator shows your exact monthly payment, total repayment amount and total interest instantly. For example, a £10,000 personal loan at 8% APR over 3 years costs approximately £313 per month and £1,278 in total interest.
What is APR on a loan?
APR stands for Annual Percentage Rate. It represents the total yearly cost of borrowing including the interest rate and any mandatory fees, expressed as a single percentage. When comparing loan offers always compare APR rather than just the interest rate, as APR gives you a more complete picture of the true cost. Enter the APR figure from your loan offer into the calculator above.
Is it better to get a shorter or longer loan term?
A shorter term means higher monthly payments but significantly less total interest paid. A longer term lowers monthly payments but increases the total cost of the loan. For example, a £10,000 loan at 8% APR over 2 years costs £452/month and £862 in total interest. The same loan over 5 years costs £203/month but £2,165 in total interest — more than double. Use the calculator to compare terms and find the right balance.
Can I use this calculator for a car loan?
Yes — the calculator works for any fixed-term loan including personal loans, car loans, student loans, home improvement loans and business loans. Select the loan type above, enter the loan amount, APR and term, and get your monthly payment instantly.
What is a typical personal loan interest rate in 2026?
Personal loan rates vary significantly by lender, loan amount, term and your credit score. In the UK representative APRs typically range from 6% to 30%+. In the US personal loan rates range from approximately 7% to 36%. In Australia rates range from approximately 6% to 25%. Always compare multiple lenders and enter the APR you are offered into the calculator for an accurate picture of your repayments.
What happens if I make overpayments on my loan?
Making overpayments reduces the outstanding balance faster, which means less interest accrues over the remaining term. Many lenders allow overpayments without penalty but some charge early repayment fees — check your loan agreement. To estimate the benefit of overpayments, reduce the loan amount by your planned extra payment and compare the results in the calculator.
How do I compare loan offers from different lenders?
Always compare the APR (Annual Percentage Rate) rather than just the headline interest rate, as APR includes fees and gives a true cost of borrowing. Enter each lender's APR into the calculator above to see the monthly payment and total cost side by side. For the same loan amount and term, the lender with the lowest APR is the cheapest option.
Can I use this calculator for loans in the UK, US, Australia, Canada or UAE?
Yes — the loan repayment calculation is identical regardless of country. Use the currency selector to switch between GBP, USD, AUD, CAD, AED and other currencies, then enter the APR from your loan offer. The calculator shows your monthly payment and total cost in your chosen currency instantly.
