This calculator will provide you with the answers to several questions about loans where you pay off the capital and interest each month. The main part of the calculator asks for details of how much you are borrowing, the annual percentage rate (APR), and the loan period or number of years the loan is set to last. The APR is intended to provide borrowers with the best indicator of the true cost of borrowing.
Based on this information, the calculator will give you the number of monthly repayments you will have to make, the amount of your monthly repayment in £s, how much you will pay over the total period of the loan (total repayments) and how much interest you will pay over the total period of the loan.
If you know the nominal rate of interest of a loan you repay monthly, but not the APR, the calculator will provide you with this answer – or the other way round. But there are several possible ways of arranging loans, so this APR calculation may be approximate.
For example, borrowing £64,000 at 6.3% over 10 years, will involve 120 monthly repayments at £714.55, total repayments of over the 10 years of £85,746.97 of which £21,747.97 will be the total interest.