Loan calculator
Monthly repayments, total interest and a year-by-year breakdown for any loan.
Monthly repayment
£197.54
60 payments, £1,852.43 interest in total
- Borrowed
- £10,000.00
- Total interest
- £1,852.43
- Total repaid
- £11,852.43
- Rate
- 6.9%
Year by year
| Year | Interest | Paid off | Left |
|---|---|---|---|
| 1 | £635.82 | £1,734.66 | £8,265.34 |
| 2 | £512.27 | £1,858.21 | £6,407.12 |
| 3 | £379.92 | £1,990.56 | £4,416.56 |
| 4 | £238.14 | £2,132.34 | £2,284.22 |
| 5 | £86.27 | £2,284.22 | £0.00 |
Show workings
- Monthly rate6.9% ÷ 12 = 0.5750%
- Monthly repayment£10,000.00 × r ÷ (1 − (1 + r)^−60) = £197.54
- Total repaid£197.54 × 60 = £11,852.43
- Interest£11,852.43 − £10,000.00 = £1,852.43
How it works
For a fixed-rate loan repaid in equal monthly instalments, the monthly payment is:
payment = amount × r ÷ (1 − (1 + r)−n)
where r is the annual rate ÷ 12 and n is the number of months. Early payments are mostly interest; as the balance falls, more of each payment pays off the loan itself.
Worked example
Borrowing £10,000 over 5 years at 6%: r = 0.005 and n = 60, so the payment is £193.33 a month. You repay £11,599.68 in total, so the loan costs £1,599.68 in interest.
Questions
Is the rate the same as the APR?
Not quite. The APR also includes compulsory fees, so it can be a little higher than the interest rate. Enter the interest rate for the most accurate repayment; using the APR gives a slightly cautious estimate.
Does a longer term save money?
It lowers the monthly payment but usually costs more interest overall, because you borrow for longer. Try both terms here to compare the totals.
What about paying it off early?
Overpaying reduces the balance and the interest, but some lenders charge an early repayment fee. Check your agreement.