Personal Loan Calculator: Work Out The Cost Of Your Borrowing

Important Disclosure: The content provided does not consider your particular circumstances and does not constitute personal advice. Some of the products promoted are from our affiliate partners from whom we receive compensation.

If you require any personal advice, please seek such advice from an independently qualified financial advisor. While we aim to feature some of the best products available, this does not include all available products from across the market. Although the information provided is believed to be accurate at the date of publication, you should always check with the product provider to ensure that information provided is the most up to date.

If you’re looking to take out a loan, there are two main options. For borrowing amounts of more than £15,000, you might consider a secured loan where you put up collateral – usually your home – as security. Interest rates on secured loans can look particularly competitive as, from the lender’s perspective, the deals are less risky. However, your property is at risk and could be repossessed if you are unable to make payments.

The other option is a ‘personal loan’ which does not require security of your home.

How do personal loans work?

When you take out a personal loan, you’ll need to pay it back in monthly instalments over the agreed ‘term’ of the deal. This can be from one to seven years.

The amount you pay each month is a partial repayment of the money you’ve borrowed plus the interest charged on top. If you choose a longer term, the monthly payments will be lower than for a shorter term. But you’ll be making payments and paying interest for longer, so the total amount you repay could be higher.

To help you work out which arrangement might suit you best, our easy-to-use calculator lets you choose the amount you want to borrow, the length of the term and the interest rate.

You can adjust these to see how it affects your monthly payments, the amount you’ll pay in interest, and the total amount you’ll repay over the term.

You can also explore how your repayments will gradually reduce your debt over term.


Compare Loans From Leading Providers

Find loans you're most likely to be approved for, without affecting your credit score


Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

Forbes adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.