Personal Loan
Calculator UK 2026

UK personal loans use the standard amortisation formula M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (APR ÷ 12 ÷ 100), and n is the term in months. A £10,000 loan at 8.5% APR over 5 years (60 months) costs £205 per month, total interest £2,308. Lenders must quote the APR (Annual Percentage Rate) under the Consumer Credit Act, which includes interest plus any compulsory fees, so the figure on the comparison site is directly comparable across lenders.

Under FCA rules (CONC 3.5), a lender's advertised 'representative APR' must be offered to at least 51% of accepted applicants. The other 49% can be priced higher. Your actual rate depends on your credit file, income, existing debts and the loan amount/term. Use a soft-search eligibility checker (Experian, ClearScore, MoneySavingExpert, or directly on the lender's site) to see your personalised rate before submitting a full application — soft searches don't affect your credit score.

Most mainstream UK personal loan lenders offer £1,000 to £25,000, with some (M&S Bank, Tesco Bank, Sainsbury's Bank, John Lewis Finance, NatWest) going up to £35,000 or £50,000 for existing customers with strong credit. The most competitive APRs (typically 5.5%–8% for prime borrowers in 2026) cluster in the £7,500–£15,000 band — borrow less or more and the rate often jumps. Loans above £25,000 may require additional income verification.

The interest rate is the cost of borrowing the principal. The APR (Annual Percentage Rate) is the all-in cost including any compulsory fees — arrangement fees, broker fees, or product fees — expressed as a single annualised percentage. For most modern UK personal loans there are no upfront fees, so APR equals the interest rate. When fees are charged, APR is always higher than the headline interest rate and is the figure that lets you compare loans like-for-like.

Almost always, if you can't clear it on a 0% balance transfer card. A £5,000 personal loan over 3 years at 9% APR costs £159/month with £728 total interest. The same £5,000 on a credit card at 24.9% representative APR, paying just minimums (~2% of balance), takes ~30 years and costs over £15,000 in interest. A 0% balance transfer (typically 0% for 18–30 months with a 2–4% transfer fee) is cheaper than a personal loan if you can clear the balance within the promo period — otherwise the personal loan wins on certainty.

Yes, all regulated UK personal loans allow early settlement. Under the Consumer Credit Act 1974 (s.94) and the Consumer Credit (Early Settlement) Regulations 2004, the lender can charge a maximum of 1 month's interest as an early settlement fee (or up to 2 months' interest if more than 12 months of the loan remain). You also get an interest rebate for the unused portion of the term. Ask the lender for an 'early settlement figure' — this includes any rebate and the legal maximum fee.

Yes — credit score is the single biggest factor. Borrowers with excellent credit (Experian 881+, Equifax 466+, TransUnion 781+) typically qualify for representative APR or better. Fair credit (Experian 721–880) sees 2–5 percentage points higher. Poor credit (under 600) is often declined by mainstream lenders or offered 25%–40% APR via specialist lenders. Other factors: income, employment status, existing debt-to-income ratio, time at current address, and electoral roll registration.

No — interest on personal loans used for personal purposes (car, holiday, wedding, debt consolidation) is NOT tax-deductible in the UK. The exception is interest on loans used wholly and exclusively for business purposes by a sole trader or partnership (deductible against trading profits), or interest on a loan used to invest in a close company or partnership where the borrower is a participator (qualifying loan interest relief, ITA 2007 ss.383–412). For most consumers, the interest cost is post-tax and should be compared directly to the loan APR.

Identity (passport or driving licence), proof of address (recent utility bill, bank statement or council tax letter), 3 months of bank statements (most lenders pull this via Open Banking with your consent rather than paper statements), proof of income (latest 3 payslips for employees, or 2 years of SA302s for self-employed). Many digital lenders (Zopa, Monzo Loans, Starling, NatWest, Lloyds) approve and disburse within minutes if you bank with them — they already have the income data.

Digital lenders (Zopa, Monzo, Starling, Atom, Marcus, Tandem) typically give an instant decision and disburse same-day or next business day if approved. Traditional bank apps (Lloyds, NatWest, Barclays, HSBC) approve in minutes for existing customers and disburse within 1–2 business days. Brokers and comparison-site routes (MoneySupermarket, Compare the Market, ClearScore) add 1–2 days for hand-off and re-underwriting. From soft-search to money-in-account, expect 24–72 hours total for most prime borrowers.