Planning a home improvement, car or debt consolidation? Enter the amount, APR and term to see your monthly repayment, the total interest and the full cost of an unsecured personal loan.
Unsecured · fixed APR
An unsecured personal loan is repaid in equal monthly instalments over a fixed term — usually one to seven years. Each payment covers the interest due that month plus part of the capital, so the balance falls to zero by the end. The calculation uses the amortisation formula:
where P is the amount borrowed, r is the monthly rate (APR ÷ 12) and n is the number of payments. The calculator does the maths and totals the interest.
Lenders often reserve their lowest rates for loans between £7,500 and £25,000. Here's how a £15,000 loan over 5 years compares at different APRs:
| APR | Monthly | Total interest |
|---|---|---|
| 5.9% | £289 | £2,338 |
| 6.9% | £296 | £2,750 |
| 9.9% | £318 | £4,083 |
| 14.9% | £356 | £6,355 |
A personal loan is unsecured, so your home is not at risk, but rates are higher than a secured loan or a mortgage. For a vehicle, weigh it against dedicated car finance. For a general comparison of any borrowing, use the standard loan calculator, and always confirm the monthly payment fits your take-home pay.
A £15,000 loan at 6.9% APR over 5 years costs about £296 a month. You repay roughly £17,750 in total, of which around £2,750 is interest.
The best advertised rates are often around 6–7% APR for sums of £7,500–£25,000 with strong credit. Smaller loans or weaker credit usually mean higher rates, sometimes 15–30% APR.
A standard personal loan is unsecured — not tied to your home or any asset. Secured loans are charged against your property and risk repossession if you fall behind.
A full application leaves a hard search on your file. Many lenders offer an eligibility checker using a soft search, which shows your likely rate without affecting your score — worth doing before you apply.
