Personal loan calculator
Our personal loan calculator helps you work out how much you can afford to borrow and what your monthly loan repayments could be.
See loans available to you
- Find loans without harming your credit score
- Understand your chance of approval before applying
See loans available to you
- Find loans without harming your credit score
- Understand your chance of approval before applying
How does the loan repayment calculator work?
The bank loan calculator works out how much your monthly loan repayments could be 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.
How to use the loan calculator
To see how much your monthly repayments will be:
- On the ‘What are my repayments?’ tab, enter the amount you want to borrow and for how long. You can type in an amount or use the slider.
- Choose the loan term – that’s the length of the loan.
- Move the slider to match your credit rating. The APR will adjust accordingly. If you have a poor credit rating, you’re more likely to be offered a higher APR.
- 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.
To see how much you can afford to borrow:
- On the ‘What can I borrow?’ tab, enter the amount you can afford to repay each month.
- Choose the loan term – that’s the length of the loan.
- If you know the representative APR of a loan you’re interested in, enter it. Alternatively, move the slider to match your credit rating. The APR will adjust accordingly. If you have a poor credit rating, you’re more likely to be offered a higher APR.
- Check the result. You’ll be able to see how much you can afford to borrow with an indication of how much you’ll pay in interest.
Before you take out a loan, think carefully about whether you can afford to pay it back and on time.
What is APR?The annual percentage rate – or APR – is the total cost of borrowing money for a year. It’s shown as a percentage of the amount borrowed. The APR includes the interest you’ll pay and the standard fees that are added to the loan, such as arrangement fees. You can use APR to compare loans and credit cards. When a loan is advertised, the representative APR tells you how much it could cost to borrow that amount of money for the specified period. The representative APR must be offered to at least 51% of successful applicants. But the actual APR you’ll be offered could be higher or lower than this, depending on your credit rating. |
What factors affect the size of the loan repayment?
When looking for a personal loan, it’s important to compare your options to make sure you don’t pay more than you need to. Here’s what to consider:
Loan term
A longer loan term will usually mean your monthly repayments are lower as they’re spread out over a longer period. But the loan will cost you more overall because you’ll be paying interest for longer.
Always choose a loan term that allows you to comfortably pay back what you owe, as quickly as you can, without getting into financial difficulty.
APR
Ideally, you want a loan with the lowest interest rate you can get. But to understand the true cost of borrowing, it’s best to focus on the APR rather than just the interest rate alone.
The APR not only includes the interest you’ll pay but other fees and costs associated with the loan.
Your credit score
If you have a good credit score, you’ll typically be charged a lower rate of interest because lenders feel confident in your ability to pay back the loan. This will make your monthly repayments cheaper.
But if you have a bad credit score, you’re likely to be charged a higher interest rate. This is because the lender sees you as more of a risk.
Read our guide to find out what you can do to help improve your credit score.
What types of loan are available?
Here are just some of the different types of loan on offer:
Secured loans need a valuable asset you own, such as your house or car, as security for the loan. You could lose this if you don’t keep up the repayments.
Unsecured personal loans don’t need any kind of asset for security. You can usually borrow up to £25,000.
Car finance options include a personal car loan, personal contract purchase, hire purchase or leasing.
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 poor credit or no credit history. They typically have higher interest rates.
Debt consolidation loans let you combine lots of different debts into one overall loan and a single monthly payment.
Compare the Market 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.
How can I reduce the cost of a loan?
- Repay early — you can usually pay off a loan early in full to save on interest, although the lender can charge you an early repayment fee. Your loan agreement will detail any early repayment charges.
- Make extra payments (overpaying) — overpay on your loan and you could reduce your interest payments. By law, you can make full or partial repayments of up to £8,000 per year without being charged a fee.
- Switch loan providers — switching an unsecured loan to one with a lower interest rate could save you money. But check that the amount you’ll save in interest is more than the early repayment charge.
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