Length of the loan in months (e.g. 60 = 5 years).
Over the full term you repay £60,829.18 — that's £10,829.18 of interest on top of the £50,000 you borrowed.
Balance over the term
How the outstanding balance falls as you repay.
How loan repayments are calculated
This uses the standard amortising loan formula — equal monthly repayments that cover interest first and chip away at the balance, so the loan is fully repaid by the end of the term.
Monthly rate r = annual rate ÷ 12
Repayment = Principal × r ÷ (1 − (1 + r)^−n)
Total interest = Repayment × n − Principal
Why it matters
The monthly repayment tells you what hits your cash flow; the total interest tells you what the borrowing actually costs. A longer term lowers the monthly payment but raises the total interest — this lets you see that trade-off before you sign.
Frequently asked questions
Is this APR or a flat rate?
It treats the rate as a nominal annual rate charged monthly on the reducing balance (the way most amortising loans work). It doesn't include arrangement fees, so compare the APR and any fees on the actual loan offer too.
Why does a longer term cost more?
A longer term spreads the principal over more months, lowering each payment — but you're borrowing the money for longer, so you pay interest for longer. Lower monthly cost, higher total cost.
Does this include fees?
No. It shows principal and interest only. Add any arrangement, broker or early-repayment fees separately when comparing the true cost of finance options.
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These calculators are for general guidance only and use the figures you enter. They are not financial, accounting or tax advice. Always check important decisions with a qualified professional.