Personal Loan
Calculator UK 2026
Work out your UK personal loan repayments — or start from what you can afford each month and see how much you could borrow. Terms to 10 years, plus the APR band your amount falls in.
Read the full answer — method, rates and figures
Quick answer: UK personal loan monthly repayment formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is loan amount, r is APR ÷ 12 ÷ 100, n is term in months. Example: £10,000 at 8.5% APR over 60 months = £205/month, total interest £2,310.
UK personal loans are unsecured, typically £1,000–£50,000 over 12–84 months. Crucially, the APR is BANDED BY AMOUNT and the bands are not monotonic: a typical published table runs 14.9% at £1,000–£2,999, 9.9% at £3,000–£4,999, 6.9% at £5,000–£7,499, 5.9% at £7,500–£25,000 and 6.9% above £25,000 — so the cheapest money sits in the middle and borrowing slightly MORE can cost LESS.
At £2,900 over 60 months, borrowing £100 more to reach the £3,000 band cuts the monthly payment by about £5 and total interest by roughly £415. Lenders must quote APR (Consumer Credit Act); a 'representative APR' need only be offered to 51% of accepted applicants under FCA CONC 3.5.5, so ask for the maximum APR too — published maximums on the same table run 21.9%, 20.9%, 17.9%, 16.9% and 11.9%.
Use soft-search eligibility checkers before formally applying — soft searches don't affect your credit score. Early repayment is a statutory right (CCA s.94), and partial overpayments totalling up to £8,000 in any 12-month period carry NO compensation charge; above that, compensation is capped at 1% of the amount repaid early, or 0.5% with under a year of the term left, and a settlement figure may include interest to 28 days after your notice plus one further month where the original term exceeded 12 months.
To work the other way, from a budget: the amount a monthly payment supports is P = M × [1 − (1+r)^-n] ÷ r. At 8.5% APR, £200 a month supports about £9,748 over 5 years and about £16,131 over 10 years — the longer term buys more borrowing on the same budget but costs far more interest.
Monthly Payment
£205.17
Capital & interest
Total to Repay
£12,310
Total Interest
£2,310
What this means for you
A £10,000 personal loan at 8.50% APR over 60 months costs £205.17 per month. You will repay £12,310 in total, of which £2,310 is interest. For comparison, the same £10,000 on a standard credit card at 24.9% APR would cost roughly £7,576 in interest over the same period — choosing a personal loan saves you about £5,266. Personal loan interest is not tax-deductible in the UK for personal use. You also have a statutory right to overpay: under CCA s.94 partial overpayments totalling up to £8,000 in any 12-month period carry no compensation charge at all.
What rate band is £10,000 in?
At £10,000 you fall in the £7,500–£25,000 band, quoted at 5.9% illustrative APR — but up to 16.9% maximum APR depending on your credit file. That spread is the number advertising hides: a "representative APR" only has to be offered to 51% of accepted applicants, so the other 49% land somewhere between the two figures above.
Band structure and figures: M&S Bank published rates table, read 24 August 2026 (terms 12–84 months; UK residents, 18+, minimum income £10,000). Rates change and differ by lender — this illustrates the banding mechanic, not a live quote.
| Loan amount | Illustrative APR | Maximum APR |
|---|---|---|
| £1,000 – £2,999 | 14.9% | 21.9% |
| £3,000 – £4,999 | 9.9% | 20.9% |
| £5,000 – £7,499 | 6.9% | 17.9% |
| £7,500 – £25,000← you | 5.9% | 16.9% |
| £25,001 – £30,000 | 6.9% | 11.9% |
Note the rate falls as the amount rises to £7,500 and then rises again above £25,000. The cheapest money is in the middle of the range, which is why borrowing a little less than you need can cost more than borrowing a little more.
Monthly payment by loan amount and term
At 8.50% APR. Change the APR above and this table follows it.
| Amount | 1 yr | 2 yrs | 3 yrs | 5 yrs | 7 yrs | 10 yrs |
|---|---|---|---|---|---|---|
| £5,000 | £436 | £227 | £158 | £103 | £79 | £62 |
| £10,000 | £872 | £455 | £316 | £205 | £158 | £124 |
| £15,000 | £1,308 | £682 | £474 | £308 | £238 | £186 |
| £20,000 | £1,744 | £909 | £631 | £410 | £317 | £248 |
| £25,000 | £2,180 | £1,136 | £789 | £513 | £396 | £310 |
| £30,000 | £2,617 | £1,364 | £947 | £615 | £475 | £372 |
Read across a row and the monthly payment falls as the term lengthens — but the total interest rises, because you are paying for longer. A £10,000 loan at 8.50% costs £316 a month over 3 years and £124 over 10, and the 10-year version pays £3,514 more in total.
Overpaying and settling early — what you can do for free
Early repayment is a statutory right on any regulated UK credit agreement under section 94 of the Consumer Credit Act 1974, and part of it is genuinely free. Partial overpayments totalling up to £8,000 in any 12-month period carry no compensation charge — the lender may only seek compensation once your early payments pass that threshold within a rolling twelve months.
Above £8,000, and on a full early settlement, compensation is capped at 1% of the amount repaid early, falling to 0.5% where less than a year of the original term remains. Separately, the settlement figure itself may include interest up to 28 days after the lender receives your notice, plus one further month where the original term was longer than 12 months — which is why an early-settlement quote is usually a little higher than the outstanding balance.
Applies to loans regulated by the Consumer Credit Act 1974 (ss. 94–95) and the Consumer Credit (Early Settlement) Regulations 2004, as amended for agreements made on or after 1 February 2011. Always check your own agreement — ask the lender for a settlement figure in writing before overpaying.
Monthly payment by loan size and APR
Capital-and-interest repayment over a 60-month (5-year) term. Even small APR differences add up: a 2-point cut on £10,000 over 5 years saves roughly £570 in interest.
| Loan | 6.0% | 8.0% | 10.0% | 12.0% | 15.0% | 20.0% | 25.0% |
|---|---|---|---|---|---|---|---|
| £3,000 | £58 | £61 | £64 | £67 | £71 | £79 | £88 |
| £5,000 | £97 | £101 | £106 | £111 | £119 | £132 | £147 |
| £10,000 | £193 | £203 | £212 | £222 | £238 | £265 | £294 |
| £15,000 | £290 | £304 | £319 | £334 | £357 | £397 | £440 |
| £25,000 | £483 | £507 | £531 | £556 | £595 | £662 | £734 |
Illustrative monthly payments over 5 years. Use the calculator above for your exact loan, APR and term.
Where to compare UK personal loan rates
Always run a soft-search eligibility check before formally applying — it shows your personalised APR without affecting your credit score. The major UK soft-search routes are Experian Compare, ClearScore, MoneySavingExpert's Loans Eligibility Calculator, MoneySuperMarket, and Compare the Market. Most major bank apps (NatWest, Lloyds, Barclays, HSBC, Santander, Nationwide, Monzo, Starling) also show you a personalised "loan we'd offer you" figure inside the app — typically tighter pricing if you already bank with them, since they already see your income.
For prime borrowers in early 2026, the cheapest representative APRs for £10,000 over 5 years are typically in the 5.5%–7.5% range from Zopa, M&S Bank, Tesco Bank, John Lewis Finance, Sainsbury's Bank and the big-five banks. Watch out for "fee-loaded" quotes from brokers where headline interest looks low but APR includes a 4–10% arrangement fee — always compare APR, not headline rate.
Last reviewed 19 September 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
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A UK personal loan is an unsecured fixed-term loan, typically £1,000 to £50,000, repaid in equal monthly instalments over 1 to 7 years. Because there's no collateral (unlike a mortgage or secured loan), the lender prices the rate based on your credit file, income, and existing debts. The Annual Percentage Rate (APR) is the all-in cost — interest plus any compulsory fees — expressed as a single annualised percentage. Under the FCA's CONC rules, lenders must show APR in any advertising of credit, and the "representative APR" must be offered to at least 51% of accepted applicants.
For example, a £10,000 personal loan at 8.5% APR over 5 years (60 months) costs £205 per month. You repay £12,310 in total — £2,310 of interest on top of the £10,000 borrowed. Stretch the same loan to 7 years (84 months) and the monthly cost drops to £158, but total interest rises to £3,303 — almost £1,000 more. Cut it to 3 years (36 months) and monthly cost jumps to £316, but total interest falls to £1,364. Term selection is the single biggest lever for total cost after APR itself.
APR vs interest rate — why the difference matters
The headline "interest rate" is the cost of borrowing the principal. The APR is interest plus any compulsory fees (arrangement, broker, product) annualised over the loan term. For most modern UK personal loan products from mainstream lenders (Zopa, Monzo, NatWest, Lloyds, Santander, M&S Bank, Tesco Bank, Sainsbury's Bank, John Lewis Finance) there are no upfront fees, so APR equals the interest rate. Where fees apply — typically with brokers, specialist subprime lenders, or some "guarantor" loans — APR is the only figure that lets you compare loans like-for-like. Always compare APR, never headline rate.
Soft search vs hard search — protect your credit file
A soft search is a credit lookup that only you can see — it doesn't affect your credit score. Eligibility checkers on Experian, ClearScore, MoneySavingExpert, and most major bank apps run soft searches to give you your personalised APR and approval probability before you formally apply. A hard search is recorded on your credit file and is visible to all future lenders — multiple hard searches in a short period (typically >3 in 6 months) can lower your score and signal financial distress. Always soft-search first; only submit a full application once you've seen a personalised rate you're happy with.
Early repayment — your statutory right
Under the Consumer Credit Act 1974 (s.94) and the Consumer Credit (Early Settlement) Regulations 2004, you can settle any regulated UK personal loan early — full or partial. The lender must give you an interest rebate for the unused portion of the term, and can charge a maximum early settlement fee of 1 month's interest (or 2 months' interest if more than 12 months of the loan remain). Always request an "early settlement figure" before paying — it includes the rebate and any fee, and is the only number you should send. Overpaying without requesting a settlement figure can leave money unaccounted for.
Personal loan vs credit card vs 0% balance transfer
For £5,000+ over 2+ years, a personal loan is almost always cheaper than a credit card paying minimum payments. Standard credit card representative APR (2026) is 19.9%–29.9% on purchases. Minimum-payment scenarios on credit cards stretch debt for 20+ years and can cost 2-3× the original balance in interest. A 0% balance transfer card (typically 0% for 18–30 months with a 2%–4% transfer fee) is cheaper than a personal loan IF you can clear the balance before the promo ends — otherwise the post-promo rate (~22%) kicks in. Personal loans win on certainty: fixed rate, fixed monthly cost, fixed end date. Use a 0% balance transfer if you're disciplined about the payoff date; use a personal loan if you want set-and-forget certainty.
Tax treatment — personal loans are not deductible
Interest on personal loans used for personal purposes (car, holiday, wedding, home improvement, debt consolidation) is NOT tax-deductible in the UK — this is different from the United States, where home equity loan interest can be deductible. The only exceptions are: (a) interest on loans used wholly and exclusively for business purposes by a sole trader or partnership (deductible against trading profits), and (b) qualifying loan interest relief under ITA 2007 ss.383–412 for loans used to invest in a close company, partnership, or to buy plant and machinery for employment use. For nearly all consumer borrowers, the loan cost is paid out of post-tax income, so the APR you see is the real cost.
How to use this calculator
- Pick a mode first: 'My repayments' if you already know the amount, or 'How much I could borrow' if you only know what you can afford each month.
- Enter the amount you want to borrow. UK personal loans typically run from £1,000 to £50,000. The most competitive representative APRs in 2026 cluster in the £7,500–£15,000 sweet spot — borrowing less or more often bumps your rate, so check eligibility at a couple of different amounts.
- Enter the APR. If you don't know your personalised rate, run a soft-search eligibility check at Experian, ClearScore, MoneySavingExpert or directly on a lender's site — soft searches don't affect your credit score. For mainstream borrowers in early 2026, expect 5.5%–8% APR for excellent credit and 10%–18% for fair credit.
- Choose your loan term in months. UK personal loans are typically 12 to 84 months (1–7 years). A shorter term means higher monthly payments but materially less interest paid over the loan. Lenders sometimes price the same loan amount differently across terms, so check rates at both 36 and 60 months.
- Choose your repayment frequency. Almost all UK personal loans are repaid monthly by Direct Debit. A few lenders offer weekly repayments aimed at non-PAYE income — the calculator shows weekly as 1/52 of the annual cost for indicative comparison.
- Review your results: monthly payment, total interest paid, total to repay, and the comparison table showing payments by APR and loan size. If the total interest figure surprises you, try shortening the term or borrowing less — even 12 months off the term can save several hundred pounds.
❓ Frequently Asked Questions
How much could I borrow on a £200 a month budget?
Work it backwards with the standard annuity formula: P = M × [1 − (1 + r)^-n] ÷ r, where M is the monthly payment, r is the APR divided by 12, and n is the term in months. At 8.5% APR, £200 a month supports roughly £9,748 over 5 years, or about £16,131 over 10 years.
The longer term lets you borrow more on the same budget, but you pay for it: the 10-year version costs substantially more in total interest for the same monthly outlay. Two cautions.
First, this is affordability arithmetic, not an offer — what a lender will actually advance depends on your credit file, income and existing debts, and most run an affordability assessment covering your wider outgoings. Second, base the budget on what you can comfortably repay after doing a proper budget, and borrow what you need rather than the maximum the figure allows.
What does a £10,000 loan cost per month over 3, 5 or 10 years?
At a representative 8.5% APR, £10,000 costs about £316 a month over 3 years, £205 over 5 years, and £124 over 10 years. The monthly figure falls as the term lengthens, but total interest moves the other way: roughly £1,364 over 3 years, £2,310 over 5, and £4,878 over 10 — so the 10-year loan costs more than three times the interest of the 3-year one on the same £10,000.
Note also that the APR itself is banded by amount in the UK: £10,000 typically sits in a lender’s cheapest band, whereas £2,900 can attract a rate several points higher, so a smaller loan is not automatically a cheaper one. Pick the shortest term whose monthly payment you can comfortably sustain, and remember that under CCA s.94 you can overpay up to £8,000 in any 12-month period with no compensation charge if your circumstances improve.
Why does borrowing more sometimes give a lower interest rate?
Because UK lenders band the APR by loan size, and the bands are not monotonic — the cheapest money sits in the middle of the range. A typical published table runs 14.9% at £1,000–£2,999, 9.9% at £3,000–£4,999, 6.9% at £5,000–£7,499, 5.9% at £7,500–£25,000, then back up to 6.9% above £25,000.
The practical consequence catches people out: at £2,900 over 60 months you would pay about £68.84 a month at 14.9%, but borrowing £100 more to reach £3,000 puts you at 9.9%, which is about £63.59 a month — a lower payment on a larger loan, and roughly £415 less total interest. The same effect appears at the £5,000 and £7,500 thresholds.
Never apply for an amount just under a band boundary without pricing the boundary too. The caveat is obvious but worth stating: only borrow more than you need when the extra money is genuinely useful to you, and check both amounts with a soft-search eligibility checker before applying.
What is the maximum APR, and why isn't it the advertised rate?
Advertised UK loan rates are 'representative APR', which under FCA rules (CONC 3.5.5) must be offered to at least 51% of accepted applicants. That leaves up to 49% of successful applicants paying more, and the advertised figure tells you nothing about how much more.
Some lenders — M&S Bank is one — publish a maximum APR per band alongside the illustrative rate, and the gap is wide: on their table the £1,000–£2,999 band runs 14.9% illustrative against 21.9% maximum, and £7,500–£25,000 runs 5.9% against 16.9%. Treat the advertised rate as a best case, look for the lender's maximum, and get a personalised quote from a soft search before applying.
Your actual rate depends on your credit file, income, existing debts, and the amount and term you ask for.
How is a UK personal loan repayment calculated?
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 £2,310.
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.
What is representative APR and will I actually get that rate?
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.
How much can I borrow with a UK personal loan in 2026?
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.
What's the difference between APR and interest rate?
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.
Is a personal loan cheaper than a credit card for £5,000?
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 £724 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.
Can I repay a UK personal loan early without penalty?
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.
Does my credit score affect the personal loan rate I get?
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.
Is personal loan interest tax-deductible in the UK?
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.
What documents do I need to apply for a UK personal loan?
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.
How long does a UK personal loan application take in 2026?
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.
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