Enter the amount, the interest rate and the term to see the repayment, the total cost of credit and the effective annual rate with fees included, plus the interest and capital you repay each year. It handles fixed-rate loans, loans priced at Bank Rate plus a margin and government-backed Start Up Loans; equal repayments, equal capital repayments and interest-only loans; monthly, quarterly or yearly repayments; and a capital repayment holiday at the start.
Enter the offer
Enter the amount, the yearly interest rate and the term in years or months, then choose how often you repay. The term must hold a whole number of repayments: a multiple of 3 months for quarterly repayments. If your loan is priced at Bank Rate plus a margin, choose that option and enter the margin: the calculator adds Bank Rate, 4% since 5 November 2026, and assumes it stays there.
Choose how the capital is repaid
Equal repayments keep the same payment each time, with more capital in each one as the loan runs. Equal capital repayments pay off the same slice of capital each time, so the repayments start higher and fall, and the total interest is lower. An interest-only loan repays no capital until the final repayment, which includes all of it; it costs the most interest.
Add fees and a repayment holiday
Upfront fees, such as an arrangement fee, do not change the repayments but raise the effective rate, because you receive less than you borrow. A capital repayment holiday means paying interest only for the first months, within the term, so the later repayments are higher.
Rounding and scope
Each repayment's interest is rounded to the nearest penny, with halves rounded up, and the final repayment clears what is left, so it can differ by a few pence. Bank Rate, Start Up Loans and the rules on regulated credit are the same in England, Scotland, Wales and Northern Ireland.
Period rate: r = yearly interest rate ÷ repayments a year (12, 4 or 1).
Equal repayments: repayment = capital × r ÷ (1 − (1 + r)^−n), n being the repayments after any holiday.
Equal capital: capital per repayment = capital ÷ n; interest = balance outstanding × r.
Interest-only: repayment = capital × r, with the capital repaid in the final repayment.
Effective annual rate = (1 + i)^(repayments a year) − 1, where i is the period rate that equates the amount received, less fees, with the repayments.
Example: £60,000 over 5 years at Bank Rate plus 3.5%
With Bank Rate at 4%, the rate is 7.5% a year, or 0.625% a month. The monthly repayment is £60,000.00 × 0.625% ÷ (1 − 1.00625^−60) = £1,202.28 (£1,202.06 for the last one), which comes to £12,136.58 of interest over 5 years. With a £1,000.00 arrangement fee, the total cost of credit is £13,136.58 and the effective annual rate 8.527%, against 7.763% with no fee.
