Free APR Calculator: Work Out Your Loan Repayments

A loan repayment calculator like this one helps you see what the numbers actually look like before you apply. Instead of relying on a headline APR figure, you can plug in the loan amount you're considering, the representative APR from an advert, and the term you'd prefer, and get a clear estimate of what you'd pay each month and in total.

How to use this APR calculator

1. Loan amount: enter how much you want to borrow. Use the preset buttons or type any amount between £100 and £5,000.
2. APR: enter the representative APR shown on the lender's advert or website. This is the annual percentage rate that at least 51% of successful applicants receive.
3. Loan term: choose how many months you'd like to repay over. Shorter terms mean higher monthly payments but less total interest. Longer terms spread the cost but cost more overall.
4. Hit Calculate repayments and you'll see your estimated monthly payment, total amount repayable, and total interest immediately.

Why your actual rate might be different

The calculator uses the APR you enter to work out the monthly interest rate and generate an estimate. But the rate a lender actually offers you depends on their assessment of your individual credit history, income, and circumstances. The representative APR in an advert tells you what the majority of successful applicants get, not necessarily what you personally will be offered.

For a full explanation of how representative APR works and what to watch out for when comparing loans, see our guide on what representative APR means.

A worked example using the calculator

Here's what the numbers look like for a common borrowing scenario: borrow £1,000 over 18 months at a representative APR of 79.5%.

• Estimated monthly repayment: £85.52
• Total amount repayable: £1,539.33
• Total interest: £539.33

These figures use a standard compound-interest loan repayment formula. Your actual lender quote may differ because regulated UK consumer credit APR calculations can include arrangement fees and other charges in the APR figure, meaning the internal interest rate used by the lender may not be identical to the headline APR. The representative example shown on this site (£87.22/month at 79.5% APR for 18 months) is calculated using the FCA's prescribed APR formula which accounts for the specific timing and structure of payments.

Try changing the loan amount, APR, or term in the calculator above to see how each factor affects the total cost.

Tips for using a loan calculator sensibly

• Try a few different terms. A 12-month loan will cost less in total interest than a 24-month loan with the same APR, but the monthly payments will be higher. Use the calculator to find the sweet spot.
• Don't just look at the monthly figure. The total amount repayable is the number that matters for your budget overall. A lower monthly payment over a longer term can end up costing significantly more.
• Check what happens if the APR is higher. If the representative APR is 79.5%, try running the calculator at 100% or 120% to see the worst-case scenario. Not everyone gets the headline rate.
• If you're struggling, get free help first. Before borrowing, use a free service like MoneyHelper to review your options, especially if you're already managing existing debts.