| Month | Payment | Interest | Principal | Remaining balance |
|---|
Mini schedule shows the first 6 payments.
How this moneysupermarket loan calculator helps
A good loan calculator is one of the easiest ways to compare borrowing options before you apply. This tool estimates your monthly payment, total interest, total repayment, and overall borrowing cost so you can quickly assess affordability.
The idea is simple: enter your loan amount, annual percentage rate (APR), and loan term, then review the numbers. You can also include an arrangement fee and choose whether that fee is paid upfront or added to the balance.
What the calculator is actually doing
1) Turning APR into a monthly rate
Lenders usually quote APR annually, but loan repayments are made monthly. The calculator converts APR into a monthly interest rate using:
- Monthly rate = APR / 12 / 100
2) Estimating a fixed monthly repayment
For most personal loans with fixed payments, the calculator uses the standard amortization formula. If APR is 0%, it simply divides the borrowed amount by the number of months.
3) Showing your full cost, not just monthly payment
A lower monthly payment can still mean a more expensive loan over time. That is why the calculator highlights:
- Total repayment across the full term
- Total interest paid
- Upfront fee and total borrowing cost
Example: quick scenario comparison
Suppose you borrow £10,000 at 7.9% APR. A shorter term generally means higher monthly payments but less interest overall. A longer term usually lowers monthly cost but increases total interest.
Use this calculator to test both options side-by-side. Changing only one variable at a time (term, APR, or fee) makes trade-offs much easier to understand.
How to use this before applying for a loan
Check affordability first
Aim for a monthly payment you can comfortably handle even if your spending changes. Building a small safety buffer into your budget helps avoid stress later.
Compare representative APRs carefully
The advertised representative APR may not be the exact rate you receive. Your actual offer can vary based on credit profile, income, and lender policy.
Include fees every time
Arrangement fees can materially change total borrowing cost. Always run the numbers with and without rolling fees into the balance.
Tips to improve your loan outcome
- Review your credit report and fix errors before applying.
- Borrow only what you need, not the maximum offered.
- Choose the shortest term that remains comfortably affordable.
- Avoid multiple hard credit applications in a short period.
- Check early repayment terms if you plan to clear the loan faster.
Important note
This moneysupermarket loan calculator provides estimates for planning and comparison. Final monthly repayments and total costs depend on the exact loan contract, lender calculations, and your personal offer details.