How to Use the Personal Loan Calculator
Our UK personal loan calculator helps you understand the true cost of borrowing and plan your monthly budget effectively. Simply enter your desired loan amount, the interest rate offered by your lender, and your preferred repayment term to get instant results.
Step-by-Step Guide
- Enter Loan Amount: Input the amount you want to borrow, typically between £1,000 and £50,000
- Add Interest Rate: Enter the APR (Annual Percentage Rate) quoted by your lender
- Choose Loan Term: Select how many years you want to repay the loan (usually 1-10 years)
- Calculate: Click the calculate button to see your monthly payments and total costs
Understanding Your Results
Monthly Payment
This is the fixed amount you'll pay each month throughout the loan term. It includes both the principal (amount borrowed) and interest charges.
Total Interest
The total amount of interest you'll pay over the entire loan term. This helps you understand the true cost of borrowing.
Total Repayment
The combined total of your loan amount plus all interest charges - the complete amount you'll repay to the lender.
Current UK Personal Loan Rates
| Loan Amount | Typical APR | Representative Example |
|---|---|---|
| £1,000 - £7,500 | 6.9% - 29.9% | £5,000 over 3 years at 6.9% APR |
| £7,500 - £15,000 | 3.2% - 9.9% | £10,000 over 5 years at 5.9% APR |
| £15,000 - £25,000 | 2.9% - 7.9% | £20,000 over 5 years at 4.9% APR |
| £25,000+ | 2.8% - 6.9% | £30,000 over 7 years at 3.9% APR |
Factors Affecting Your Loan Rate
Credit Score Impact
Your credit score is the most significant factor in determining your interest rate. Higher scores typically qualify for lower rates:
- Excellent (961-999 Experian): Access to best rates, typically 2.8% - 4.9% APR
- Good (881-960 Experian): Competitive rates, typically 4.9% - 9.9% APR
- Fair (721-880 Experian): Standard rates, typically 9.9% - 19.9% APR
- Poor (Below 720 Experian): Higher rates or specialist lenders required
Other Important Factors
- Income and Employment: Stable employment and higher income improve rates
- Debt-to-Income Ratio: Lower existing debt relative to income is favourable
- Loan Amount and Term: Larger amounts and shorter terms often get better rates
- Banking Relationship: Existing customers may receive preferential rates
Tips for Getting the Best Loan Rate
Before Applying
- Check your credit score and report for errors
- Pay down existing debts to improve your debt-to-income ratio
- Avoid making multiple credit applications in a short period
- Consider whether you need the full amount you're thinking of borrowing
When Shopping for Loans
- Compare rates from multiple lenders, including banks, building societies, and online lenders
- Use eligibility checkers to see likely rates without affecting your credit score
- Consider the total cost, not just the monthly payment
- Check for any fees, such as arrangement or early repayment charges
Frequently Asked Questions
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal amount, while APR (Annual Percentage Rate) includes the interest rate plus any additional fees or charges. APR gives you a more accurate picture of the total cost.
Can I pay off my loan early?
Most UK lenders allow early repayment, but some charge an early repayment fee (typically 1-2 months' interest). Check the terms before signing and factor this into your decision.
What happens if I miss a payment?
Missing payments can result in late fees, damage to your credit score, and potentially defaulting on the loan. Contact your lender immediately if you're struggling with payments.
How much can I borrow?
Personal loan amounts typically range from £1,000 to £50,000, but the amount you're approved for depends on your income, credit score, and existing financial commitments. Most lenders cap loans at 4-5 times your annual income.