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Loan calculator

Thinking about taking out a loan? It’s worthwhile knowing roughly how much your monthly payments will be and what the loan will cost you overall, to see if you can afford it. With our personal loan calculator you can find the information you need to compare loan terms and interest rates quickly and easily.

£1,000 £50,000
Slider increases by £1,000 each time.

£50 £1,000
Slider increases by £10 each time.

The longer the loan term, the less you pay each month - but you will end up paying more interest.

APR stands for annual percentage rate and shows the total cost of borrowing money over a year.
The APR you will get is determined by each lender's criteria, and your own financial circumstances.
3%
Excellent credit rating
40%
Poor credit rating

For simplicity, this slider increases by 1% each time.
Information about credit ratings.

This calculator has been designed to give you an idea of how much a loan would cost each month and the amount of interest that you would pay overall for the different loan terms. This is just an example and the actual interest rate you would get depends on your own personal circumstances and lender checks, the amount borrowed, and the terms of the loan.

See loans available to you

  • Find loans without harming your credit score
  • Understand chance of approval before applying

See loans available to you

  • Find loans without harming your credit score
  • Understand chance of approval before applying
This calculator has been designed to give you an idea of how much a loan would cost each month and the amount of interest that you would pay overall for the different loan terms. This is just an example and the actual interest rate you would get depends on your own personal circumstances and lender checks, the amount borrowed, and the terms of the loan.

How does the loan calculator work?

The personal loan calculator works out either how much you’ll have to pay each month or how much you can borrow, based on different variables. These include:

  • Amount borrowed
  • Interest rate
  • Length of the loan
  • Monthly payments.

If you change any of the variables, the loan repayment calculator will work it out all over again with the new figures.

The personal loan calculator will give you an approximate guide to what someone with a particular credit rating will get. However, when you apply for a loan, how much you can borrow will be based entirely on your own individual circumstances, personal credit rating and the criteria of the loan provider – so may vary from the rough guide the loan calculator provides.

How to use the loan calculator

To see how much your monthly repayments will be:

  1. Make sure you’re on the ‘What are my repayments?’ tab.
  2. Enter the amount you want to borrow and for how long – you can either fill in the box or use the slider.
  3. Select how many years you want to pay back over.
  4. The average APR is shown but this can be adjusted accordingly, based on whether you have a good or bad credit rating. If you know you have a poor credit score, you’re more likely to be offered a higher APR.
  5. Check the result – you’ll be able to see how much your monthly repayments will be and how much you’ll pay overall in interest.
  6. If you want to, you can then see what the difference is if you pay back over a longer or shorter time, or if you’re offered a higher interest rate.

To see how much you can afford to borrow:

  1. Select the ‘What can I borrow?’ tab.
  2. Enter the amount you can afford to repay every month.
  3. Choose the number of years you want to pay back over.
  4. If you know the representative APR of a loan you’re interested in, enter it. The average APR is shown but this can be adjusted accordingly, based on whether you have a good or bad credit rating. If you know you have a poor credit score, you’re more likely to be offered a higher APR.
  5. Check the result – you’ll be able to see how much you can afford to borrow with an indication of what you’d pay in interest.
  6. If you want to, you can try experimenting with some of the variables, to see what happens to the total if you pay back for a shorter or longer period, for example.

In either case, you can then check to see how likely you are to be accepted for this sort of loan. Simply select the ‘Check your loan eligibility’ button, enter a few personal details and you’ll be able to see loans that you’re likely to be accepted for without it having an impact on your credit score.

Once you’ve seen the loans you’re likely to be eligible for, you’re ready to apply for one.

Think carefully about whether you can afford to pay back a loan regularly and on time before you take one out.

What should I look for when comparing loans?

When looking for a personal loan, ideally you want the one with the lowest interest rate so you’re not paying more than you need to. Some loans may also charge an arrangement or set-up fee, which could add to the cost of borrowing.

Also check whether there’s a penalty for paying back the loan early or making overpayments.

More on comparing loans

What’s the difference between the loan calculator and the loan eligibility checker?

The loan calculator will give you a rough idea of what you’d need to pay back each month for a loan of a particular amount, based on a specific rate of interest (APR). It won’t point you to particular loans.

The loan eligibility checker is more personalised, going a little more deeply into your circumstances to give you an idea of which loans you’re likely to be accepted for, and at what rate of interest. While this will run a soft check on your credit history, it won’t affect your credit rating as lenders can’t see your historic searches, they can only see applications.

The two can work helpfully together. The loan repayment calculator can be a good starting point, giving you a guide to what your monthly payments could be. But the financial climate means that lenders will weigh up very carefully how likely you are to repay your loan. This is where the eligibility checker can help. It will give you an indication of which loans you’re likely to be approved for. You can them come back to compare your options on the loan calculator to make the best choice for you.

Struggling to find a loan you’re eligible for? Read our guide to find out what you can do to improve your credit score.

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Frequently asked questions

What is APR?

The annual percentage rate – or APR – is the total cost of borrowing money over the course of a year. It’s shown as a percentage of the amount borrowed and includes the cost of interest and any fees that are automatically added to the loan, such as arrangement fees.

Knowing the APR can help you compare the total cost of taking out a personal loan or credit card. Lenders must tell you about the representative or typical APR when they advertise a loan. Where the term ‘representative APR’ is used, this advertised rate must be offered to at least 51% of successful applicants.

See more on APRs and how they work

What is my credit score?

Your credit score is a three or four-digit number that shows lenders how well you’ve handled credit in the past. It’s one of the factors that lenders look at when you apply for a loan to decide how likely you are to repay it. A higher credit score means you’re more likely to be accepted for a loan and offered better rates. A lower credit score may mean you have less choice when it comes to finding a loan and you’ll likely be charged higher interest rates.

Credit scores are provided by the three main credit reference agencies (CRAs): Experian, Equifax and TransUnion. 

How is a credit score calculated?

Credit scores are calculated based on the information in your credit report, including:

  • Personal details, like your address and if you’re registered to vote
  • Your financial history, including how many credit accounts you have and how you’ve handled credit in the past
  • Any bankruptcies, insolvencies or County Court Judgements (CCJs).

Each credit reference agency has a different way of calculating credit scores based on the information in your credit file. Read our guide to find out what counts as a good credit score.

How can I reduce the cost of a loan?

Here’s a few ways you can reduce the cost of a loan.

  • Switch loans. There may be other loans available with lower interest rates or shorter payment terms that could save you money. Use our personal loan calculator to work out if a new loan will work out cheaper overall and make sure you can afford the repayments.
  • Repay early. You can pay a loan off early to save on interest, although lenders may charge you an early repayment fee. Check your loan agreement to see if you’ll be charged.
  • Make extra payments (overpaying). Overpay on your loan and you could reduce your interest payments. If you took out a loan from February 2011 onwards, by law you can overpay up to £8,000 extra per year without being charged a fee.

Can I save by switching loans?

You could save money overall by switching to a loan with a lower interest rate or a shorter repayment term, but you may have to pay a penalty – make sure that doesn’t outweigh any potential savings. Check your loan agreement to see what you’ll be charged to make the switch and use our personal loan calculator to compare the overall cost of loans.

How can I apply for a loan?

Many lenders will let you apply for a loan online. You’ll need to provide some personal details, including your address, your employment details and income, your monthly outgoings and details of any other loans or credit agreements you’re currently paying off. You may have to upload certain documents as evidence. The lender will then run a credit check on you to see how creditworthy you are and use that, along with the information you’ve provided on your income and expenses, to decide whether to lend to you.

Loan applications can impact your credit record, so it’s a good idea to use our loan eligibility checker to see what loans may be available to you before you apply.

What type of loans are available?

Here are some different types of loan available:

Secured loans are guaranteed against an asset you own, like your house or car. You could lose the asset if you don’t keep up repayments.

Unsecured personal loans are based on factors like your credit rating and income, and you don’t need to put up an asset as security.

Car loans can be secured or unsecured loans, or car finance offered by a dealership.

Guarantor loans are guaranteed by a relative or friend who promises to pay back the loan if you can’t.

Bad credit loans are aimed at borrowers who have a poor credit history and typically have higher interest rates.

Debt consolidation loans allow you to combine multiple debts into one loan and one monthly payment.

Comparethemarket Limited acts as a credit broker, not a lender. To apply, you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.

Page last reviewed on 08 AUGUST 2023
by Sajni Shah