Loan repayment calculator
Enter the amount you want to borrow, the APR and the loan term. The calculator estimates the fixed monthly repayment and the total cost over the full term.
How to use this calculator: compare the monthly repayment with your budget, then look at the total interest to understand the real cost of borrowing. Try shorter and longer terms to see the trade-off.
Loan repayment formula
This calculator uses the standard amortising loan repayment formula. It assumes a fixed rate and equal monthly repayments across the full term.
monthly_rate = APR / 100 / 12
months = loan_term_years × 12
monthly_payment =
principal × monthly_rate × (1 + monthly_rate)^months
÷ ((1 + monthly_rate)^months − 1)
If the APR is 0%, the calculator simply divides the principal by the number of months. If the arrangement fee is added to the loan, it increases the principal used in the repayment calculation.
What your result means
The monthly repayment shows the regular payment needed to clear the loan by the end of the term. The total repaid shows how much leaves your pocket overall. The total interest shows the extra cost of borrowing above the loan amount and any upfront fee.
A lower monthly payment is not always cheaper. Extending the term can make the loan feel easier month to month, but it usually increases the total interest because the balance stays outstanding for longer.
Compare borrowing options
Before applying, compare the total cost, APR, fees, flexibility and early repayment rules. Do not judge a loan by the monthly payment alone.
How loan repayments work
A typical personal loan is repaid in fixed monthly instalments. Each payment covers interest and part of the original balance. At the start of the loan, more of the payment goes towards interest because the outstanding balance is higher. As the balance falls, more of each payment reduces the debt.
The three biggest inputs are the amount borrowed, the APR and the term. Borrowing more increases the repayment. A higher APR increases the interest cost. A longer term spreads the cost over more months, which can reduce the monthly payment but normally increases the amount of interest paid overall.
Fees also matter. Some loans charge an arrangement fee. If the fee is added to the loan, you may pay interest on that fee as well. If it is paid upfront, it does not increase the balance, but it still increases the total cost of credit.
This calculator gives an estimate rather than a binding quote. Real loan offers may depend on your credit profile, affordability checks, the lender’s criteria and whether the rate shown is guaranteed or representative.
What affects your loan repayment?
- Loan amount: the more you borrow, the higher the monthly repayment.
- APR: a higher APR increases both the monthly repayment and total interest.
- Loan term: longer terms can lower monthly payments but increase total interest.
- Fees: arrangement fees can increase the cost, especially if added to the balance.
- Early repayment rules: some lenders may charge if you settle early.
- Affordability: lenders may look at income, debts and credit commitments before approval.
Loan repayment FAQs
How do I calculate loan repayments?
Loan repayments are calculated from the amount borrowed, the interest rate and the term. A fixed-rate loan spreads the repayment across the full term using an amortising formula.
How much would a loan cost each month?
The monthly cost depends on the loan amount, APR, term and any fees. Use the calculator above to change each input and see the effect instantly.
Is a longer loan term cheaper?
A longer term can reduce the monthly repayment, but it often increases the total interest because you are borrowing for longer.
How does APR affect loan repayments?
A higher APR increases the monthly payment and the total interest. APR helps compare borrowing costs because it expresses the yearly cost of credit.
Can I repay a personal loan early?
Some loans allow early settlement or overpayments, but there may be charges or interest rules. Check your loan agreement before making extra payments.
Key terms used in this calculator
These glossary terms explain the borrowing language used on this page.