Your loan details
This is an educational estimate. Actual lender repayments may differ because of fees, timing, rounding or product terms.
How loan payments are calculated
For a typical fixed-rate repayment loan, the monthly payment is calculated from the amount borrowed, the monthly interest rate and the number of monthly payments.
Payment = 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 total number of monthly payments.
Worked example
For a £15,000 loan at 6.5% annual interest over 5 years, this calculator estimates the monthly repayment and shows how much of the total cost comes from interest.
Frequently asked questions
Does this include lender fees?
No. Arrangement fees, early-repayment charges, insurance and other costs are not included unless they are already part of the loan amount you enter.
What happens if the interest rate is 0%?
The calculator simply divides the amount borrowed by the number of monthly payments.
Is this the same as APR?
No. APR can include certain fees and is designed to show the overall annual cost of borrowing. This calculator uses the annual interest rate you enter.