UK Loan Calculator
Calculate monthly loan payments, total interest, and total repayment for personal loans, car loans, and debt consolidation. Free, accurate, and easy to use.
Calculate Your Loan
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How UK Loans Work
Understanding APR
APR (Annual Percentage Rate) represents the total cost of borrowing, including interest and any fees. A lower APR means you'll pay less overall. Your APR depends on your credit score, loan amount, and term.
Personal Loans
Amount: £1,000 - £50,000
Term: 1-7 years
Typical APR: 6-15%
Unsecured loans for any purpose. Fixed monthly payments make
budgeting easy.
Car Loans
Amount: £1,000 - £50,000
Term: 1-5 years
Typical APR: 5-12%
Secured against the vehicle. Often lower rates than personal
loans.
Debt Consolidation
Amount: £1,000 - £50,000
Term: 1-7 years
Typical APR: 7-18%
Combine multiple debts into one payment. Can save money if APR is
lower than existing debts.
Home Improvement
Amount: £1,000 - £75,000
Term: 1-10 years
Typical APR: 5-12%
For renovations and repairs. Larger amounts and longer terms
available.
Representative Example
If you borrow £10,000 at 8.9% APR over 3 years, you'll pay £316.23 per month. Total repayment: £11,384.28. Total interest: £1,384.28.
Frequently Asked Questions
How much can I borrow?
UK lenders typically offer personal loans from £1,000 to £50,000. The amount you can borrow depends on your income, credit score, existing debts, and employment status. Most lenders require you to earn at least £10,000-£15,000 per year. As a general rule, lenders prefer your total monthly debt payments (including the new loan) to be less than 40-50% of your monthly income.
What credit score do I need?
Most UK lenders require a credit score of at least 550-600 (Experian scale) for loan approval. Higher scores (700+) qualify for better interest rates. If you have a poor credit score, you may still get approved but will face higher APRs (15-30% or more). Check your credit report with Experian, Equifax, or TransUnion before applying.
Should I choose a shorter or longer loan term?
Shorter terms (1-3 years) mean higher monthly payments but less total interest paid. Longer terms (4-7 years) reduce monthly payments but increase total interest. Choose based on your budget: if you can afford higher payments, go shorter to save money. If you need lower payments for affordability, go longer but understand you'll pay more overall.
Can I pay off my loan early?
Most UK loans allow early repayment, but some charge an Early Repayment Charge (ERC) of 1-2 months' interest. Check your loan agreement before applying. Paying off early saves interest, so even with an ERC, it's often worth it. Some lenders allow overpayments without penalty, letting you pay off faster while keeping the loan open.
What's the difference between APR and interest rate?
The interest rate is the percentage charged on the loan amount. APR (Annual Percentage Rate) includes the interest rate plus any fees (arrangement fees, broker fees, etc.). APR gives you the true cost of borrowing. Always compare APRs, not just interest rates, when shopping for loans.
Will applying for a loan affect my credit score?
Checking your eligibility with "soft searches" won't affect your credit score. However, formal loan applications involve "hard searches" which temporarily lower your score by a few points. Multiple applications in a short time can significantly damage your score. Use eligibility checkers first, then only apply for loans you're likely to be approved for.
Is debt consolidation a good idea?
Debt consolidation can be beneficial if: (1) the new loan's APR is lower than your existing debts, (2) you'll save money on interest, and (3) one payment is easier to manage than multiple payments. However, extending the repayment term might mean paying more interest overall, even with a lower APR. Calculate carefully before consolidating.
Ready to Apply for a Loan?
Now that you know your monthly payments, compare loan offers from multiple lenders to find the best APR for your circumstances.