Work out monthly repayments and total interest on any UK loan — personal, car finance, or business borrowing.
Last updated: April 2026
Year-by-year breakdown
Personal loans in the UK use the standard amortisation formula. Each payment is split between interest (charged on the remaining balance) and principal repayment. In the early months, most of your payment goes to interest. As the balance reduces, more of each payment goes to clearing the principal.
UK lenders must show representative APR, which includes both interest and any compulsory fees. APR is the standard way to compare loans. Avoid lenders who advertise "flat rates" — these can disguise high effective interest, especially in car finance.
Most UK personal loans regulated by the Consumer Credit Act let you make early repayment. Lenders can charge up to 2 months' interest as an Early Repayment Charge (ERC). Compare the saved interest vs the ERC — early settlement is often still worth it.