UK Loan Calculator
Easily estimate your monthly repayments and total interest costs.
Pay more each month to reduce interest and finish early.
Monthly Repayment
Total Repayment
£11,599.80
Total Interest
£1,599.80
Interest Saved
£0
calendar_month Yearly Payment Breakdown
| Year | Principal Paid | Interest Paid | End Balance |
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How Do Loan Repayments Work?
When you take out a loan, your monthly repayment is typically split into two parts: the principal (the actual amount you borrowed) and the interest (the cost of borrowing the money from the lender).
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1
Amortization
Over time, the portion of your payment going towards interest decreases while the portion going towards the principal increases.
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2
Overpayments
By paying even a small amount extra each month, you can significantly reduce the total interest paid and shorten the loan term.
Key Terms to Know
APR (Annual Percentage Rate)
This represents the true cost of borrowing, including the interest rate and any mandatory fees associated with the loan.
Fixed vs. Variable Rate
Fixed rates stay the same throughout the term, while variable rates can fluctuate based on the Bank of England's base rate.