How much will a personal loan cost me
MoneySuperMarket's loan calculator is designed to give you an idea how much a personal loan is going to cost so you can assess affordability.
Loan calculator
Find out what monthly repayments would be, how much you'll pay overall and how much you could borrow.
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Results
Total amount
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Based on the information you supplied, you would be borrowing XXX and repaying the loan in XXX monthly instalments of . The total sum to repay, subject to XXX% APR over the full loan term would be XXX. This assumes there are no extra fees and that your payments are made on time and in full.
Total amount
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Based on the information you supplied, you could borrow XXX at a monthly repayment rate of to be paid over XXX monthly instalments. Over the full loan term at XXX% APR, the total amount repayable would be XXX. This assumes there are no extra fees and that your payments are made on time and in full.
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The maximum personal loan is £50,000
If you need a larger amount, consider a secured loan, which will allow you to borrow more but uses your home as collateral. Be aware that lenders can sell your house if you fail to keep up with repayments.
How does the loan repayment calculator work?
Our loan repayment calculator works out how much you can borrow and what your monthly repayments will be based on:
The amount you wish to borrow
The amount you can repay each month
Loan term
APR
It'll also show you how much you're borrowing and the total amount repayable, so you can work out the 'cost' of borrowing over the full loan term.
Whether you’re planning home improvements, buying a new car, or consolidating your debts, our calculator can give you an idea of how much a loan is going to cost. It’s simple to use.
How do I use the loan calculator?
If you know how much you want to borrow:
Select ‘Calculate monthly repayments’
Enter the total amount, how long you want to pay it back, and at what interest rate
Hit ‘Calculate’
For example:
If you want to borrow £12,000 over five years at 7% interest, your monthly repayments will be £236.40. The total amount repayable will be £14,182.93, making the loan cost £2,183.93.
To see how much you can borrow based on what you can afford in monthly loan repayments:
Select ‘What can I afford?’
Enter the monthly repayment you can afford to make, the length of time you can afford to pay that amount, and at what interest rate
Hit ‘Calculate’
By selecting different annual interest rates (APRs) on our loan repayment calculator, you can see how your monthly loan repayments and total repayment cost will change. Remember, the calculator shows you an example rather than the exact cost of an available deal.
For example:
If you can afford to pay back £250 each month over five years at 7% interest, you could afford to borrow up to £12,690.42, and the total amount repayable will be £15,000. This means the loan will cost £2,309.58.
What does APR mean?
The term 'APR' stands for Annual Percentage Rate. It refers to the yearly interest rate you pay on a loan or credit card. But it also includes any fees or charges that apply.
Consequently, when you see an APR in an advert or comparison table, it's giving you a more complete, fuller picture of what you'll pay when you borrow money.
However, it's worth noting that you may not always qualify for the advertised APR. In practice, the rate you receive depends on your credit score.
Keen to find out more? Read our guide to APRs on credit cards.
How are loan payments calculated?
Monthly loan repayments can be calculated by dividing the total loan and interest by the number of months it will take to pay off.
Our loan repayment calculator shows you how much a loan will cost you each month, and how much interest you’ll pay overall.
Personal Finance Expert
Think "how much do I need?", rather than "how much can I borrow?"
Even though larger loans can carry smaller interest rates, you should always carefully consider the cost of the project you’re embarking on. After all, whether you’re getting hitched or paying down existing debts, it will all need repaying in the end. We’d recommend you have an up-to-date budget to hand, so you know what you can afford to repay before you start.
How long should my loan term be?
If you're keen to keep your total costs down, it's a good idea to choose a shorter term. But be aware: the shorter the loan duration, the more you'll have to pay back each month.
As a rule of thumb, you should choose the shortest loan term you feel you can comfortably afford - outstanding credit agreements can make it more difficult to secure other forms of lending, like mortgages, as existing credit agreements lower your affordability.
As an illustrative example, here's what borrowing £10,000 at 7% interest over varying loan terms would mean for monthly repayments, total amount repayable, and loan cost.
Loan Term (Years) | Monthly Repayment (£) | Total Amount Repayable (£) | Loan Cost (£) |
|---|---|---|---|
3 | £307.79 | £11,080.40 | £1,080.40 |
5 | £197 | £11,819.94 | £1,819.94 |
7 | £149.88 | £12,589 | £2,589.74 |
What factors affect the loan repayment amount?
Loan term: How long you’ve taken out the loan for will influence how much the monthly repayments will be. Generally, with a longer loan your payments will be smaller as you have more time to pay off your loan. A shorter loan duration will typically mean higher monthly repayments.
APR: Annual Percentage Rate (APR) is the total cost of your borrowing for the year. When you compare loans you’ll see a representative APR, which is what 51% of borrowers will get. The APR you’re given by the lender is a personal APR which could be more or less than the representative APR. Your credit rating will affect the APR you’re given, a higher APR will mean higher repayments.
Credit score: Your credit score indicates to lenders how reliable of a borrower you are and is a good indicator of your eligibility. If you have a good credit rating, it can cost you less to borrow as lenders are more confident about your ability to make repayments. However, a bad credit score can mean higher repayment amounts as the lender is taking more of a chance on you by accepting you for a loan.
Need to check your credit file? Use our free credit scoring service to check your score and any outstanding factors that may boost your chances of approval, or address errors on your credit file that may be holding you back.
How can I reduce the total cost of a loan?
Choose a shorter loan term: If you want your loan to cost less overall, then opting to pay it offer in a shorter timeframe can help. You’ll end up with higher monthly repayments, but the total cost (including interest) would be less than if you took out a loan for longer.
Look for a low APR: Shop around when looking for loans and try to find ones which have the lowest rates. When you compare loans with us, you can sort your results by rate, so you can see the most competitive offers first.
Avoid extra fees: Loans can come with additional charges such as an early repayment fee or an arrangement fee. When you look for a new loan with us, we clearly highlight any fees you may have to pay.
Compare loans with MoneySuperMarket
Our loans search tool uses information about your income and requirements to find personal loan quotes from our panel of lenders.
If you’re a homeowner, it can also show you secured loan deals. To find out more about how to apply online for a loan read our step-by-step guide.
Remember: the loan rates you see will only include loans you’re likely to be offered and will be based on a 'soft' or simple credit check which won't show up on your credit file or affect your credit score.
The loan amount, rate and duration you are offered may differ because they are based on a more detailed investigation of your credit history and financial situation.
We compare loans that can be paid back over terms of between one and 25 years. The APR - interest rate - you’ll be charged depends on your personal circumstances and credit score, and will usually be between 2.8% and 99.9%.
MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead, we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.
Need help working out your mortgage payments too? Use our mortgage calculators.
