Question 1

What is an amortisation schedule?

Accepted Answer

An amortisation schedule is a table showing every monthly loan repayment, broken into interest and capital portions, with the remaining balance after each payment.

Question 2

What APR is good for a personal loan in the UK?

Accepted Answer

A good APR for a UK personal loan in 2026 is below 7 percent. The average is around 6.33 percent for a 10000 pound loan. Those with excellent credit can find rates below 5 percent.

Question 3

Should I choose a shorter or longer loan term?

Accepted Answer

A shorter term means higher monthly payments but less total interest paid. A longer term lowers monthly payments but increases the total cost of the loan.

Question 4

What percentage of my salary should go on loan repayments?

Accepted Answer

As a guideline, total debt repayments should not exceed 20 percent of your monthly take-home pay. Below 10 percent is considered comfortable.

Question 5

Can I repay my loan early?

Accepted Answer

Most UK lenders allow early repayment, though some charge an early settlement fee, typically up to 58 days interest. Use the extra payment field to model overpaying.

Question 6

How is my monthly payment calculated?

Accepted Answer

Using the standard amortisation formula: monthly interest rate multiplied by the loan amount multiplied by one plus the monthly rate raised to the power of the number of months, divided by one plus the monthly rate raised to the power of months minus one.

Free Loan Repayment Calculator — Monthly Payments & Amortisation