Monthly payment £201. Total interest £2,059.
Borrowing £10,000 at 7.9% APR over 5 years costs about £201 a month. You'd repay £12,059 in total — £2,059 of it interest.
Compare loan terms
Same £10,000 at 7.9% APR. Tap to load a term.
| £312/mo | £1,219 interest | |
| £201/mo | £2,059 interest | |
| £154/mo | £2,937 interest |
A shorter term costs more each month but far less in total interest. A longer term eases the monthly payment but you pay for the money over more years.
Year-by-year breakdown
| Year | Interest | Principal | Balance left |
|---|---|---|---|
| 1 | £704 | £1,708 | £8,292 |
| 2 | £569 | £1,843 | £6,449 |
| 3 | £423 | £1,988 | £4,461 |
| 4 | £266 | £2,146 | £2,315 |
| 5 | £97 | £2,315 | £0 |
Early payments are mostly interest; later ones mostly clear the balance. A shorter term raises the monthly payment but cuts the total interest sharply. Many lenders let you overpay or settle early — check for early repayment charges first. Not sure what the rate really means? Read what is APR? Buying a car? Compare PCP and HP with the car finance calculator. Clearing a card? Try the credit card payoff calculator.
Example loans
Monthly repayments on a personal loan
At 7.9% APR, for illustration. The rate a lender offers you depends on the amount, the term and your credit record.
| Borrowed | 2 years | 3 years | 4 years | 5 years |
|---|---|---|---|---|
| £2,000 | £90 | £62 | £48 | £40 |
| £5,000 | £225 | £156 | £121 | £100 |
| £7,500 | £338 | £234 | £182 | £151 |
| £10,000 | £451 | £312 | £242 | £201 |
| £15,000 | £676 | £467 | £364 | £301 |
| £20,000 | £901 | £623 | £485 | £402 |
| £25,000 | £1,126 | £779 | £606 | £502 |
For example, £10,000 over 5 years is £201 a month, with £2,059 of interest in all.
What's changing
- Bank Rate rises to 4%: what changes for your mortgage and savings?
Money Insights · Published
The Bank's November decision does not change every account by the same amount. Compare tracker, variable and fixed products, with clearly labelled mortgage and savings illustrations.
Frequently asked questions
How are loan repayments calculated?
A personal loan is amortising: a fixed monthly payment is set so the balance reaches zero by the end of the term. Each payment covers the month’s interest on the remaining balance first, with the rest reducing what you owe — so early payments are mostly interest and later ones mostly principal.
What is APR and is it the same as the interest rate?
APR (Annual Percentage Rate) bundles the interest rate together with any compulsory fees into a single yearly figure, so it’s the fairest way to compare loans. The “representative APR” is what at least 51% of accepted applicants get — the rate you’re actually offered can be higher.
Does a longer term make a loan cheaper?
A longer term lowers the monthly payment but increases the total interest you pay, because you owe the money for longer. A shorter term costs more each month but far less overall. Use the year-by-year breakdown to see the trade-off.
Can I pay a loan off early?
Usually yes. Under UK rules you can settle a regulated loan early and only pay interest up to roughly 28–58 days after you tell the lender, though some agreements add an early repayment charge. Overpaying reduces the balance and the total interest — always check your agreement first.
Will using this calculator affect my credit score?
No. This is just a maths tool — nothing is sent to a lender and there is no credit check. A real application involves a credit search, but many lenders offer a soft-search “eligibility check” that shows your likely rate without affecting your score.
Want to repay faster?
Even a small extra payment each month cuts the term and the total interest. The loan early repayment calculator shows what extra monthly payments, a one-off lump sum or settling early would save, and the most a lender can charge.
Related calculators & guides
Sources & guidance
Last reviewed June 2026 against official rates · How we calculate →
An illustration based on the amount, APR and term you enter, assuming a fixed rate and equal monthly payments for the whole term. The representative APR is a guide — the rate you are offered depends on your circumstances and credit history, and your actual agreement may include fees. This is not a loan offer or financial advice.
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