Finance Calculator

Loan Repayment
Calculator

Enter your loan details → see your monthly payment & total cost instantly

£
%
Loan Term 5 years
1yr 5yr 10yr 20yr 30yr
Quick set

Enter your loan details above to calculate →

How to Calculate Monthly Loan Repayments in the UK

Your monthly loan repayment is calculated using the standard amortisation formula, which spreads your principal and interest evenly across the loan term. The formula is: M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate, and n is the number of months.

For example, a £10,000 loan at 6.5% over 5 years results in a monthly repayment of approximately £195. Over the full term you'd repay around £11,700 — meaning £1,700 goes to interest. A longer term reduces monthly payments but significantly increases total interest paid.

This calculator works for personal loans, car finance, and any fixed-rate instalment loan. For mortgage calculations, see our Mortgage Affordability Calculator. To understand your net salary after deductions, use our Take-Home Pay Calculator.

Related Calculators
Credit Card Payoff Calculator → Debt Snowball Calculator →
SY
Written and reviewed by Sanjeev Yoganathan
BSc Actuarial Science · 10+ years in insurance, pricing and financial services