UK loan repayment and overpayment calculator

Estimate monthly loan repayments and total interest from the amount, APR and term. Add an extra monthly payment to compare the time and interest saved before repayment charges.

Monthly payment

£197.00

Months saved in this estimate: 0. Interest saved before repayment charges: £0.00.

Your details

Amount to borrow

The amount is rounded to the nearest penny for the calculation.

APR %

Length in months

Extra monthly payment

Added to the normal payment each month, rounded to the nearest penny. Enter zero to keep the original repayment plan.

Estimated loan repayments
Without extra payments
Months saved in this estimate	0
Interest saved before repayment charges	£0.00
Monthly payment	£197.00
Months to repay without extra	60
Interest without extra payments	£1,819.98
Total repaid before separate charges	£11,819.98
Final payment	£196.98
With extra payments
Monthly payment with extra	£197.00
Months to repay with extra	60
Interest with extra payments	£1,819.98
Total repaid before separate charges	£11,819.98
Final payment	£196.98

With no extra payment, both estimates use the same repayment plan.

Repayment charges are excluded. Ask your lender how it applies extra payments and what charges apply.

How the comparison is worked out

Treat APR 7% as an effective annual rate. The monthly rate is i = (1 + APR / 100)^(1 / 12) - 1, about 0.0056541454 as a decimal. The calculation uses the unrounded rate.
With loan amount A = £10,000.00, repayment months n = 60 and monthly rate i from above, the normal payment is P = A x i / [1 - (1 + i)^(-n)] = £197.00, rounded to pennies.
Add extra payment X to normal payment P: £197.00 + £0.00 = £197.00 each month.
First-month interest is £10,000.00 x the unrounded monthly rate, rounded to pennies: £56.54.
The first payment is the smaller of £197.00 and the balance plus interest: £197.00.
After the first payment, the balance is £10,000.00 + £56.54 - £197.00 = £9,859.54. Repeat the monthly interest and payment steps until the balance clears.
Interest saved before repayment charges is £1,819.98 without extra less £1,819.98 with extra = £0.00.
Months saved is 60 without extra less 60 with extra = 0.
The final payment with extra is £196.98, limited to the balance plus that month's interest. The final contracted month clears any penny residue.

Yearly repayment without extra payments

Yearly repayment without extra payments
Year	Paid	Interest	Owed at the end
1	£2,364.00	£625.09	£8,261.09
2	£2,364.00	£503.37	£6,400.46
3	£2,364.00	£373.13	£4,409.59
4	£2,364.00	£233.75	£2,279.34
5	£2,363.98	£84.64	£0.00

Yearly repayment with extra payments

Yearly repayment with extra payments
Year	Paid	Interest	Owed at the end
1	£2,364.00	£625.09	£8,261.09
2	£2,364.00	£503.37	£6,400.46
3	£2,364.00	£373.13	£4,409.59
4	£2,364.00	£233.75	£2,279.34
5	£2,363.98	£84.64	£0.00

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What the calculator assumes

The rate stays fixed for the whole estimate. Payments are monthly and made on time.
The calculator treats the APR you enter as an effective annual rate. It converts that into a monthly rate with the same annual effect and uses it to estimate interest on the remaining balance.
The comparison keeps the normal monthly payment and adds your extra amount from the first payment onwards to shorten repayment. It does not model a lender reducing your normal payment instead.
Monthly interest and payments are rounded to pennies. The final payment clears the remaining balance and can differ from the normal payment.
Early repayment charges and separately known fees are excluded. Applying APR as a rate does not reproduce a lender's fees or settlement calculation. The interest saving is shown before those charges.

How the monthly payment is worked out

The normal payment spreads repayment over the period you enter. Each monthly payment covers the estimated interest and reduces what you still owe. The table shows the balance falling over time.

APR helps compare the annual cost of borrowing. This calculator uses it as an effective annual rate, then converts it into a monthly rate. That is a model of repayment: it does not reproduce each fee or the lender's own interest method. If you know about a separate charge, check it alongside the estimate.

What an extra monthly payment changes

The comparison adds your extra amount to the normal monthly payment and keeps paying that combined amount until the balance is cleared. It shows the difference in repayment months and total interest. The final payment is limited to what remains due in the estimate.

Interest saved is shown before early repayment charges. Ask your lender whether extra payments shorten the term or reduce future monthly payments, and what charges would apply. If you want to clear the loan in full, ask for an early settlement figure.

What it leaves out

The estimate excludes early repayment charges, separately known fees and payment protection insurance. It also leaves out variable rates, payment holidays and missed payments. Credit cards and overdrafts use different repayment rules.

For PCP or hire purchase, use the car finance calculator. A final PCP payment needs its own calculation. The compound interest calculator shows how interest builds on savings. For a home loan, the mortgage overpayment calculator covers that separate repayment model.

A loan repayment and overpayment example

Borrowing £10,000.00 at 7% APR over 60 months gives a normal monthly payment of £197.00 in this estimate. Without extra payments, total repayment is £11,819.98, including £1,819.98 of interest. The final payment is £196.98 because the balance is rounded to pennies each month.

Adding £50.00 each month brings the payment to £247.00. Repayment takes 47 months instead of 60, saving 13 months and £431.84 in interest before repayment charges. The final payment with extra is £26.14.

This example uses a fixed rate, monthly payments made on time and extra payments from the first month. Separate fees and early repayment charges are excluded.

Questions

Will my lender shorten the loan when I pay extra?

The calculator assumes extra payments shorten repayment while the normal monthly payment stays the same. Your lender may reduce future monthly payments instead. Ask how it will apply the extra amount before comparing its figures with this estimate.

Does the interest saving include repayment charges?

The interest saving is before repayment charges. Separately known fees are also excluded. Ask your lender for the charges that would apply; they can reduce the saving from paying early.

Why can the lender's figures differ?

This estimate converts APR into a monthly rate and rounds monthly interest and payments to pennies. A lender can use a different interest method, payment dates or fee calculation. Its agreement and settlement figure determine the actual amount due.

Check the agreement before paying extra

MoneyHelper's personal loan guide explains early repayment charges and asking for a settlement statement. Citizens Advice explains paying off a credit agreement early, including asking how a partial payment changes future payments. That page links to guidance for each UK nation. Check the guidance and your credit agreement for your circumstances.

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