WorthChex / Personal loan calculator

Loan amount

APR

Term

years

Fee added to borrowing

Extra monthly payment

The result also models a £50 higher monthly payment so you can compare interest and time.

METHOD

Borrowing cost, not just the monthly payment.

The calculator uses a standard amortising-loan model and treats an added fee as part of the borrowing amount.

Representative APRs, fees and early-repayment terms can differ by lender, so use this for comparison rather than as a lender quote.

Read the full WorthChex methodology →

UNDERSTANDING PERSONAL LOANS

APR and term determine how the same borrowing amount can cost different totals.

The monthly payment is only one part of a loan comparison. A longer term spreads the repayment over more months, while interest and fees can increase the total amount repaid. The calculator lets you compare those changes without presenting the result as a lender quotation.

APR

APR is designed to help compare the overall cost of borrowing, including certain fees, but the exact product terms still need checking.

Term

Shortening the term generally increases the monthly payment but can reduce the number of months that interest is charged.

Extra payments

An overpayment can reduce interest in a simple fixed-rate model, but actual contracts can impose limits or early-settlement rules.

Worked example

As a simple illustration, borrowing £20,000 at 8% for 5 years produces a monthly payment of roughly £405 before any fees. The total repaid is higher than £20,000 because the borrower pays interest over the term.

MoneyHelper advises checking APR, total repayment, monthly cost and fees before taking out credit. MoneyHelper: managing credit well →

REVIEWED SEPTEMBER 2026

Use the estimate to compare an actual offer.

Enter the figures from a lender's quotation or pre-contract information where possible. If a product includes fees, a balloon payment, variable rates or special settlement rules, make sure your comparison reflects the actual agreement rather than relying on a simplified scenario.

A lower monthly payment can cost more overall.

For a standard amortising loan, the monthly payment contains both interest and principal. Extending the term spreads the borrowing across more months, which can reduce the payment but increase the total interest charged over the life of the loan.

APR

Use the representative APR from the actual offer where possible. It is more useful for comparing borrowing costs than looking at a nominal rate in isolation.

Fees

A fee added to the borrowing increases the amount being financed in this model. Read the lender's actual fee terms because products can treat fees differently.

Overpayments

Testing an extra monthly amount shows the potential effect on interest and payoff time. Actual early-repayment rules depend on the credit agreement.

Example: a £10,000 loan at 8.9% over five years is not just a £10,000 decision. The rate and term determine how much interest accumulates, while a fee or extra payment can move the total in either direction.

Before taking a loan, look beyond the payment.

Compare the total amount payable, APR, fees, term and any early-repayment conditions you are offered. Then check the monthly payment against your existing household budget rather than assuming the lender's maximum is affordable.

Also check whether the purpose of the borrowing can be met in a cheaper way, whether you need the full amount and whether a shorter term remains manageable. The calculator is there to show the mathematics of the scenario, not to tell you whether borrowing is suitable.

Use a second scenario

Run the quoted offer first. Then try a £50 or £100 higher monthly payment, or a shorter term. Seeing how much time and interest changes can help you understand the value of flexibility in the repayment plan.

For general borrowing guidance, MoneyHelper provides information about loans and APR. Read MoneyHelper's personal-loan guidance →

Personal loan calculator FAQs

What does APR tell me?

APR is designed to express the annual cost of borrowing and can include certain fees. Use the lender's representative figure when comparing actual offers.

Does a longer term always make a loan cheaper?

No. It may reduce the monthly payment but can increase the total interest because the balance is outstanding for longer.

Can I always overpay a personal loan?

Early-repayment rights and charges depend on the agreement and applicable rules. Check the actual lender terms before relying on an overpayment plan.

Should I compare monthly payments or total cost?

Both. The monthly payment tells you about affordability; total cost tells you what the borrowing may cost over the full modelled term.