Adverts show the monthly payment. They don’t show what the loan really costs you by the end — or that the advertised rate only has to go to around half of successful applicants. See both before you sign anything.
Most UK personal loans run from 1 to 7 years. Shorter means a higher monthly payment but far less interest overall.
Use the ‘representative APR’ from the advert to start — then read the orange box for why your real offer may be higher.
| At 14.9% | If offered 24.9% |
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Uses the standard UK APR convention (interest compounding monthly at a rate equivalent to the annual APR) with a fixed rate and no fees — the same maths as our homepage example. It’s an illustration, not a quote or financial advice. Nothing you enter is stored or sent anywhere.
A loan has three moving parts: how much you borrow, how long you take, and the APR. The first two are your choice; the third is the lender’s decision — and it’s where most surprises live. The APR (annual percentage rate) bundles the interest and any compulsory fees into one comparable number, so a 7.9% APR loan is cheaper than a 9.9% one for the same amount and term, whoever the lender is.
The number adverts push hardest is the ‘representative’ APR — and it comes with a catch built into the rules: lenders only have to offer that rate to 51% of the people they accept. The other 49% can be offered something higher, and you typically only find out after applying. That’s why the calculator above shows the same loan at your rate and at 10 points higher — so a worse offer never ambushes you.
New to how loans work? Start with our plain-English guide to understanding loans. If the loan is for clearing other debts, run the numbers in our debt payoff calculator first — a plan often beats a consolidation loan. And our bill-cutting checklist can free up cash that shrinks how much you need to borrow in the first place.
It’s the rate a lender must offer to at least 51% of the people it accepts for that advertised loan. The rest can be offered a higher rate based on their credit record and circumstances — and you generally only see your personal rate after applying, or by using a soft-search eligibility checker first.
No. This page doesn’t connect to any lender or credit agency — the maths runs entirely in your browser and nothing is stored. Checking your likely rate with a lender’s eligibility checker is also safe: those use a soft search that other lenders can’t see. Only a full application leaves a hard search on your file.
Yes. UK borrowers have a legal right under the Consumer Credit Act to repay early, in part or in full, whenever they like. The lender can charge a small settlement fee — capped at roughly one month’s interest (two if the loan has more than a year left) on the amount you repay — which is almost always far less than the interest you save by clearing it sooner.
Lenders price loans individually using your credit history, income, existing debts and the amount and term you asked for. The advert’s representative APR only has to cover just over half of accepted applicants, so a higher personal offer is common — it doesn’t necessarily mean anything is wrong with your file. You’re free to decline the offer and check other lenders.
Only if the shorter term genuinely doesn’t fit your budget. The monthly payment falls, but you pay interest for longer, so the total cost climbs steeply — try moving the term slider above and watch the total repaid figure. A good compromise: pick the affordable term, then use your right to overpay whenever you have spare cash.
No. Everything runs in your browser on this page — nothing is saved, sent or shared, and you won’t be asked for an email address.
Run your actual balances through a payoff plan first — it often beats taking a consolidation loan.
