UK money
Loan calculator
Monthly payment, total interest, and what a budget could borrow.
How to use it
- Enter the amount you want to borrow, or switch to a monthly budget to see what that budget could borrow.
- Enter the APR and the term, in years or in months.
- Compare the term you chose with a shorter one and a longer one.
From an APR to a monthly payment
An APR is an effective annual rate, and it includes some fees. This page turns it into a monthly rate with (1 + APR) to the power of 1/12, minus 1, then works out the payment that clears the loan over the term. Because the APR already folds in some fees, a lender’s quote can differ slightly.
£5,000 over 3 years at 9.9% APR is £160.11 a month on this method. These are estimates, not a loan offer and not financial advice.
Working back from a budget
In “what can I borrow”, the same formula is turned around. The payment and the term produce the largest amount that payment would clear. A longer term borrows more and usually costs more in interest. For a home loan, use the mortgage calculator, which starts from a nominal annual rate divided by 12 rather than an APR.
Questions
Does the APR include the interest only?
No. An APR includes interest and certain fees. If a quote was built from a different fee, the monthly payment will not match this page exactly.
Why do the nearby terms change the payment so much?
The same amount is spread over fewer or more months, and interest is charged on the balance that is left. A shorter term costs less interest and needs a higher payment.