What this calculator does

Use this loan calculator to compare the monthly repayment and total borrowing cost for a fixed-rate loan. It is useful for personal loans, car finance estimates and simple business borrowing scenarios.

Formula used

The calculation uses a fixed-rate amortisation formula. Fees can be added to the starting balance and any extra monthly payment is applied after the scheduled payment.

How to read the result

A lower monthly payment can still cost more overall if the term is longer. Compare both the monthly payment and the total interest before deciding which offer looks better.

Assumptions

  • Assumes equal scheduled monthly payments.
  • Assumes the rate does not change during the term.
  • Fees are added to the balance only when entered.
  • Does not include late payment fees, variable rates or early repayment charges.

Sources and checks

This calculator uses a standard public formula. Where rules or thresholds can change, source links are listed on the relevant page.

Frequently asked questions

Is APR the same as the interest rate?

APR is designed to include interest and certain compulsory costs. If a lender quotes both a nominal rate and an APR, use APR for broad comparison.

Can I use this for car finance?

Yes for a simple fixed-rate loan. Hire purchase, PCP and leases may include balloon payments or mileage terms, so they need more specific calculators.