Personal loan APRs
Most UK personal loans don't charge arrangement fees, so the APR is close to the interest rate: a little higher because of monthly compounding.
The calculator finds the monthly rate at which your payments exactly repay the money you actually receive, then turns it into an annual rate including the effect of compounding: APR = (1 + monthly rate)^12 − 1. Fees paid upfront reduce the money you receive, so they push the APR up.
Worked example
£7,500 repaid at £179.60 a month over 4 years is an interest rate of 7.0% and an APR of 7.2%.
Representative APRs
Advertised representative APRs only have to be offered to at least 51% of successful applicants. Use your own quote's payment to check your actual APR.
Inputs for the personal loan APR calculator
Amount borrowed
The amount of the loan.
Upfront fees
Any arrangement or other fees you pay at the start, or that are taken from the loan. Enter 0 if there are none.
Monthly payment
Your regular monthly repayment from the quote or agreement.
Term
How many years the payments last.
CALCULATOR QUESTIONS
Personal loan APR calculator questions
Why is the APR higher than the interest rate?
Because interest compounds monthly; fees would push it higher still.
Will I get the advertised APR?
Not necessarily. Only 51% of successful applicants must be offered it.
What's the difference between APR and the interest rate?
The interest rate is what's charged on the balance. The APR also includes compulsory fees and the effect of compounding, so it's the better figure for comparing deals.
How do I check my APR?
Enter your quote's amount, payment and term above.