Loan Repayment Calculator

Work out monthly repayments, total interest and the full cost of a fixed-rate personal loan.

Loan details

£

Use the annual interest rate from a loan quote or illustration. This calculator does not calculate APR, and fees or lender-specific methods may change the true cost of borrowing.

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Results

  • Monthly repayment

    £244.13

    Final payment £244.08

  • Total interest

    £1,718.19

  • Total repayable

    £11,718.19

Number of payments

48

Loan term

4 years (48 months)

Estimate onlyFigures are illustrative estimates for general information. This is not an offer of credit, not personalised financial or credit advice, and not a lender illustration.

How loan repayments are calculated

On a typical fixed-rate personal loan, each monthly payment covers that month’s interest on the outstanding balance, with the rest reducing the principal. Early payments are mostly interest; later payments are mostly principal. This calculator uses that standard amortising model with a monthly rate equal to the nominal annual interest rate divided by 12.

Interest rate vs APR

The interest rate is the rate applied to the outstanding balance. APR is a broader measure of borrowing cost that can include compulsory charges and is calculated under specific UK consumer credit rules. A representative APR is an advertising figure for at least 51% of successful applicants — not necessarily the rate you will be offered. This tool does not calculate APR.

Why a longer loan term usually costs more

Extending the term usually reduces the monthly repayment, but you pay interest for longer. The total interest — and therefore the total amount repayable — is typically higher for a longer term when the rate and principal are unchanged.

Why your lender's quote may differ

Lenders may use different payment dates, rounding, fees or contractual methods. Representative APRs in adverts are not personal quotes. Always check the illustration or agreement from the lender before borrowing.

Loan repayment calculator limitations

Fees, insurance, early-repayment charges, variable rates and overpayments are not modelled. Results are illustrative estimates only — not an offer of credit, not a credit-brokerage service, and not personalised financial or credit advice. Sorvuna does not assess affordability or eligibility.

Frequently asked questions

How are monthly loan repayments calculated?

For a fixed-rate amortising loan, the calculator uses the standard level-payment formula with a monthly interest rate equal to the nominal annual interest rate divided by 12. Each payment covers that month’s interest on the outstanding balance, with the rest reducing the principal.

Is the interest rate the same as APR?

Not necessarily. The interest rate is the rate applied to the outstanding balance. APR is a broader statutory measure of the cost of credit that can include compulsory charges and is calculated under specific UK consumer credit rules. This calculator uses a nominal annual interest rate and does not calculate APR.

What is a representative APR?

A representative APR is an advertising figure. Under UK rules it must be the APR that at least 51% of successful applicants for that promotion are expected to receive. It is not a guarantee of the rate any individual borrower will get.

Does a longer loan term cost more?

Usually yes in total interest. Stretching repayments over more months typically lowers the monthly payment but increases the total interest paid over the life of the loan, all else equal.

Can I model loan overpayments?

Not in this version. The calculator assumes level contractual monthly repayments with no extra payments. Overpayments can reduce interest and shorten the term, but they are outside this tool’s scope.

Is this an offer of credit or financial advice?

No. Results are illustrative estimates for general information only. Sorvuna does not offer credit, does not assess affordability or eligibility, and does not provide personalised financial or credit advice. A lender’s quote may differ.

Figures are illustrative estimates for general information and planning. They are not an offer of credit, not a lender illustration, and not tax, legal or financial advice. Actual lender rates and repayments may differ. Methodology.

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