Loan Calculator
Calculate monthly payments, total interest, and amortisation schedules for all types of loans
Loan Details
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Select the type of loan you're calculating
£
Total amount you want to borrow
%
Annual interest rate (APR)
years
Length of the loan (typically 1-10 years for personal loans)
Personal Loan Information
Personal loans are unsecured loans that can be used for various purposes like debt consolidation, home improvements, or major purchases.
- Typical APR: 6% - 36%
- Loan Terms: 2 - 7 years
- Loan Amounts: £1,000 - £100,000
- No Collateral: Based on creditworthiness
Monthly Payment Breakdown
Enter loan details to calculate payments
Monthly payment breakdown will appear here
Loan Summary
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Amortisation Schedule
Understanding Loans
How Loans Work
A loan is money borrowed from a lender that must be repaid with interest over a specified period. The monthly payment includes both principal (loan amount) and interest charges.
Key Components
- Principal: The amount you borrow
- Interest Rate: The cost of borrowing money
- Term: The length of time to repay
- APR: Annual Percentage Rate including fees
- Monthly Payment: Fixed amount paid each month
Factors Affecting Rates
- Credit Score: Higher scores get better rates
- Income: Stable income improves approval odds
- Debt-to-Income: Lower ratios are preferred
- Loan Purpose: Secured loans typically have lower rates
Types of Loans
- Personal: Unsecured, flexible use, higher rates
- Auto: Secured by vehicle, lower rates
- Business: For business purposes, various terms
- Student: Education funding, special terms
Loan Terms
- Short-term (1-3 years): Higher payments, less interest
- Medium-term (3-7 years): Balanced payments
- Long-term (7+ years): Lower payments, more interest
- Consider total cost: Not just monthly payment
Tips for Better Rates
- Improve Credit: Pay down debts, check reports
- Shop Around: Compare offers from multiple lenders
- Consider Secured: Collateral can lower rates
- Shorter Terms: Save money on total interest
- Larger Down Payment: Reduce loan amount needed