Free calculator

APR / Loan Payment Calculator

Loan payment from amount, APR, term and payment frequency. Total interest, EAR, optional fees, year-by-year interest table.

Last checked:

Calculator

Paymentn/a
Total interestn/a
Total repaidn/a
EARn/a
Approx APR incl. feesn/a
Year by year
YearInterestCumulative interestBalance

How is a loan payment calculated from APR?

Payment = principal × r(1+r)^n ÷ ((1+r)^n − 1), where r = APR ÷ payments per year and n is the number of payments.

What is EAR vs APR?

EAR = (1 + APR/m)^m − 1. It folds compounding into an effective annual rate.

Is the APR in a UK loan advert the same as the rate here?

Not quite. UK regulated APR compares drawdowns with repayments and charges on an annual basis, so it works like an effective annual rate with fees included. This calculator simply divides the rate by payments per year. A true 6% APR means about 0.487% a month, not 0.500%, so £10,000 over 5 years costs about £192.59 a month rather than £193.33. Trust the lender’s quoted payment over either.

Does a longer loan term cost more?

Usually a lot more in total, for a smaller monthly bill. £10,000 at 6% costs £304.22 a month over 3 years with £951.90 interest, and £146.09 a month over 7 years with £2,271.19 interest.

How much do upfront fees add to the real rate?

More on shorter loans, because the fee is spread over fewer payments. A £200 fee on £10,000 at 6% over 5 years leaves you £9,800 for the same £193.33 a month, which works out at about 6.8% on this calculator’s basis.

£10,000 over 5 years, monthly payments, by rate

Uses this calculator’s method (rate ÷ 12). Rates are examples, not quotes from any lender.

RateMonthly paymentTotal interest
3%£179.69£781.21
5%£188.71£1,322.74
6%£193.33£1,599.68
8%£202.76£2,165.84
10%£212.47£2,748.23
15%£237.90£4,273.96
20%£264.94£5,896.33
30%£323.53£9,412.04

The formula

Periodic rate r = APR ÷ payments per year
Payment = principal × r(1+r)^n ÷ ((1+r)^n − 1)  (for r > 0)
Total repaid = payment × n; total interest = total repaid − principal
EAR = (1 + APR/m)^m − 1  (m = compounds per year; here payment frequency)
With upfront fees, APR-including-fees solves for the rate that discounts net proceeds to the payment stream.

Worked example

Borrow £10,000 at 6% APR for 5 years, monthly payments.

Monthly rate = 0.06/12. n = 60. Payment ≈ £193.33.

Total repaid ≈ £11,599.68. Total interest ≈ £1,599.68.

EAR = (1 + 0.06/12)^12 − 1 ≈ 6.17%.

Methodology

How it calculates

  • Standard amortising loan payment from APR and payment frequency, plus total interest and EAR.
  • Optional fees solve for an APR-including-fees style comparison rate on net proceeds.

Formula

Periodic rate r = APR ÷ payments per year
Payment = principal × r(1+r)^n ÷ ((1+r)^n − 1)  (for r > 0)
Total repaid = payment × n; total interest = total repaid − principal
EAR = (1 + APR/m)^m − 1  (m = compounds per year; here payment frequency)
With upfront fees, APR-including-fees solves for the rate that discounts net proceeds to the payment stream.

Assumptions

  • Divides the rate by payments per year (nominal basis). Regulated UK APR is calculated on an annual basis and includes charges, so a quoted APR gives a slightly lower periodic rate than this tool assumes. Use the fees field for a closer read.

Edge cases

  • Zero APR uses payment = principal ÷ n.

Sources

Last checked:

FAQ

Is this UK APR exactly?

It is the standard compound formula used for comparison. Regulated UK APR quotes can fold in fees under FCA rules; use the fees field for a closer read.

Does it use live rates?

No. You type the APR. No lender data feed.

Sources

Rates, rules or specs last checked 1 Nov 2026. Confirm on the official page before you act.

Not financial advice. This calculator is for education only. Double-check results before you make money decisions. Past moves do not predict future ones.