Before applying for a loan, you can see your chances of approval without affecting your credit score. Check your eligibility with our preferred loans broker, Loans Warehouse. Good and bad credit history accepted.
Checking eligibility is a quick, confidential process that has no impact on your credit score. It is completely separate from any credit score data or records that may be currently held about you.
It’s free, quick and straightforward to use our loan calculator, and it won’t affect your credit score.
You simply need to input the amount you want to borrow, the number of months you want to borrow over, and the annual percentage rate (APR) of the loan.
When you’re ready, click “calculate” to see how much your monthly repayments would be and the amount you would repay overall, based on the information you provide.
You can adjust these fields to see how they affect your monthly payment and the total amount you repay.
The loan calculator uk assumes the interest rate remains fixed for the duration of the term.
It’s a good idea to use a loan calculator before applying for a loan as this can help you work out what loan size and term to apply for.
For example, you can see how changing the term could affect the loan, whether you’re trying to lower the monthly payments or reduce the total amount you repay.
This will allow you to see if a loan would be an affordable option for you and if you could realistically make the required payments.
As a result, a loan interest calculator could stop you from applying for a loan you can’t afford or give you confidence in being approved if it shows the monthly payments would be comfortably within your budget.
Taking out a loan you can’t afford could put a strain on your finances as you try to cover the monthly payments and, in a worst-case scenario, you could default on the loan. This could have serious consequences for your credit history and your overall financial situation.
Example one: Someone wants to borrow £8,000 to pay for some bathroom refurbishments. They have a good credit history and want to pay off the loan as quickly as possible. To see their estimated monthly repayments, they use the loan calculator and adjust the loan term to see the shortest term they could get while still being able to afford the payments.
Example two: Someone wants to buy a car, and they’re wondering whether it would be cheaper to take out a personal loan or a form of car finance. They use the loan calculator to get a rough guide of how much a loan would cost in total and what the monthly payments could be, compared to using a car finance agreement.
Most lenders charge a fixed rate of interest on their unsecured personal loans. This means you’ll pay the same rate of interest for the whole loan term.
The interest rate is charged as a percentage of the amount borrowed.
Lenders may calculate and charge interest in slightly different ways, so it’s a good idea to check the total amount repayable before taking out a loan.
APR stands for annual percentage rate and tells you the total cost of borrowing over one year.
It takes into account the interest rate as well as any fees charged as standard. The higher the APR, the more expensive your loan.
Lenders advertise a representative APR on their loans, but it’s important to note that you may not necessarily receive this rate. Only 51% of successful applicants need to receive this rate; the remaining 49% could be charged more than this.
When you apply for a loan or check your eligibility, you will receive a personal APR which is the rate the lender will charge you based on the information you have provided.
The APR is important because it allows borrowers to compare the cost of personal loans on a like-for-like basis.
This can make it easier to find the cheapest option, as it means you don’t need to check for any fees that may be charged alongside the interest.
For example, it could be difficult to work out whether a loan with a low interest rate and a high fee is more or less expensive than a loan with a higher interest rate but no fee. The APR removes this complication as it takes both factors into account to show you the annual cost of a loan.
You don’t need to work out the APR with an APR calculator; the lender will do this for you.
While the interest rate and APR both tell you how much a loan will cost, the APR includes the cost of any fees in addition to the interest.
This means that the APR and interest rate on a loan could be the same if the lender doesn’t charge any fees.
However, if a loan does come with a fee, the APR will be higher than the interest rate and provide a more accurate reflection of the total cost of the loan.
It’s up to you how long your loan term is.
Even though a longer loan term means your monthly payments will be smaller, this means you’ll pay more interest overall.
As a result, it’s better to choose as short a loan term as possible (that still allows you to afford the monthly payments) so you pay less interest.
The table below shows the effect that different loan terms can have on a loan of £5,000 with an APR of 9.9%.
Loan duration (years) | Monthly payment | Total repayment | Total interest paid |
3 | £160.11 | £5,764.02 | £764.02 |
5 | £104.95 | £6,297.23 | £1,297.23 |
7 | £81.66 | £6,859.59 | £1,859.59 |
These figures are calculated using our loan calculator.
Loan repayment calculators can be a useful guide, but there are some limitations as they’re not tailored to your individual situation.
For example, you may not know the exact interest rate you would be charged until you actually apply for a loan. This means the monthly payments and total interest charged may be different to the sums indicated on the calculator.
Furthermore, it won’t account for any changes made during the loan term, such as changing the payment date or making an overpayment.
A number of different factors affect the cost of a loan so there are several ways you may be able to cut costs.
If you’ve used the loan calculator and decided to apply for a loan, you could improve your chances of approval by:
There are several types of loans available, including:
Loan payments are important because they have a direct impact on your credit score and, consequently, your financial situation. Late or missed payments could negatively affect your credit score and cause more serious consequences for your finances, affecting your ability to get credit in the future, for example.
If you miss a loan payment, this is likely to be recorded on your credit file and could harm your score. The lender may also charge a penalty fee.
Yes, you may be able to ask the lender to change the repayment date of your loan. However, this may be subject to certain terms.
Some lenders may allow you to change your repayment date, but this could affect the amount of interest charged. Check with the individual lender before changing your repayment schedule to see what the impact would be.
See our charts to compare personal loans and their representative APR.