Everything you need before taking out a loan. Check your eligibility, calculate exact repayments, compare multiple offers, simulate credit score improvements and find out whether paying off early saves you money.
Taking out a loan without doing the numbers first is one of the most expensive mistakes you can make. A difference of just 3% APR on a £10,000 loan over 3 years costs over £900 in extra interest. Our 10 free loan calculators give you the complete picture — eligibility, true cost, affordability and comparison — before you speak to any lender or risk a hard credit search on your file.
UK personal loans are regulated by the Financial Conduct Authority (FCA). Before approving a loan, lenders must carry out an affordability assessment. Understanding what they examine helps you prepare and significantly improves your approval chances.
| Factor | What Lenders Check | Ideal Target |
|---|---|---|
| Credit Score | Payment history, utilisation rate, defaults, searches | 720+ for competitive rates (Experian 0–999) |
| Debt-to-Income (DTI) | Total monthly debt payments ÷ gross monthly income | Under 40% — above 50% most mainstream lenders decline |
| Income Multiple | Annual income vs amount you want to borrow | 3–5× annual income depending on credit profile |
| Employment Status | Full-time, part-time, self-employed, contractor | Full-time employed receives the best rates and terms |
| Loan Purpose | Home improvement, car, debt consolidation, personal | Declare accurately — affects the lender’s risk assessment |
| Loan Term | Longer terms lower the monthly payment but increase total interest | Shortest affordable term minimises the total cost of borrowing |
A soft eligibility check shows you whether you’re likely to be approved and at what rate — without affecting your credit score at all. Always do this before a formal application. Our Loan Eligibility Calculator lets you assess your chances first, for free.
Representative APR is the rate offered to at least 51% of successful applicants. Up to 49% may receive a higher rate based on their individual credit profile, meaning the advertised rate is not guaranteed to everyone. Here is what to expect by credit band in 2026:
| Credit Band | Experian Score | Typical APR | £10,000 / 3yr Monthly | Total Cost |
|---|---|---|---|---|
| Excellent | 961–999 | 3.5% – 6.0% | £296 – £304 | £10,660 – £10,950 |
| Good | 721–880 | 6.0% – 12.9% | £304 – £338 | £10,950 – £12,160 |
| Fair | 580–720 | 12.9% – 24.9% | £338 – £397 | £12,160 – £14,290 |
| Poor | Below 580 | 24.9% – 39.9%+ | £397 – £454 | £14,290 – £16,340+ |
The difference between excellent and poor credit on a £10,000 loan over 3 years is over £5,600 in extra interest. Improving your credit score before applying — even by 50–100 points — can make an enormous financial difference. Use our Credit Score Improvement Simulator to see how specific actions affect your projected score and what rate you’d qualify for.
Debt consolidation replaces multiple high-interest debts — credit cards, overdrafts, store cards — with a single lower-rate personal loan. Done correctly it can save thousands. Done incorrectly it can cost more.
The key number is your blended rate — the weighted average interest rate across all your existing debts. If your consolidation loan rate is lower than your blended rate and the term is not dramatically longer, you will save money overall. Our Debt Consolidation Calculator calculates your blended rate automatically and gives you a clear, data-driven verdict.
A lower monthly payment often comes from a longer loan term, not a lower rate. A 10% consolidation loan over 7 years can cost more in total interest than a 22% credit card cleared in 2 years. Our calculator shows you both the monthly saving and the total cost so you can make the right decision.
Overpaying a personal loan is one of the best financial moves available to UK borrowers. Paying an extra £100 per month on a £12,000 loan at 8.9% APR saves over £800 in interest and pays the loan off 12 months early. That is an effective guaranteed return of 8.9%, completely tax-free and zero risk — better than most savings accounts currently available.
Most UK personal loan lenders allow you to overpay up to 10% of your outstanding balance per year without an early repayment charge (ERC). Above that threshold, lenders can charge up to 2 months’ interest. Our Early Repayment Savings Calculator shows you the exact saving for any overpayment amount and tells you whether paying the ERC is financially worth it.
UK lenders typically offer 3–5 times your annual gross income as a maximum, adjusted for existing debts and credit score. Most personal loans range from £1,000 to £25,000, with some lenders offering up to £50,000 for well-qualified borrowers. Use our Loan Eligibility Calculator to see your personalised maximum based on your income, debts and credit profile.
For loans of £7,500–£25,000, the best available rates start from around 3.5–6% APR for excellent credit. For amounts under £7,500, rates tend to be higher — typically 7–15% for good credit. Always compare on APR, not the headline interest rate, as APR includes all mandatory fees and is the only fair metric for comparison between different loan products.
A hard credit search — which lenders run when you formally apply — temporarily reduces your score by around 5–10 points and stays on your file for 12 months. Multiple applications in a short period can signal financial difficulty to other lenders. Always use a soft eligibility check first, which shows you whether you’ll likely be approved without affecting your score at all.
The interest rate is the basic cost of borrowing as a percentage. APR (Annual Percentage Rate) includes the interest rate plus all mandatory fees — such as arrangement fees — spread over the loan term. APR is the only fair comparison metric. A loan with 8% interest and a £200 arrangement fee may actually have a higher APR than a 9% loan with no fees, making the 9% loan cheaper overall.
Yes, but lenders typically require 2–3 years of self-assessment tax returns or certified accounts to verify income. Your income may be assessed differently depending on the lender — some use net profit, others gross income, others a 2-year average. Our Loan Eligibility Calculator includes a self-employed option that adjusts your estimate accordingly.
We recommend this sequence for the best outcome: (1) Credit Score Simulator — understand and improve your score first. (2) Eligibility Calculator — check approval chances and maximum amount. (3) Affordability Checker — confirm repayments fit your budget including a stress test. (4) Comparison Calculator — evaluate specific offers from lenders side by side. (5) Early Repayment Calculator — plan how to pay it off faster and cheaper once you have the loan.
Every calculator on this page runs entirely in your browser — no data is ever sent to our servers or stored anywhere. All inputs are private and disappear when you close the tab. Results update instantly as you adjust values, so you can explore any number of scenarios freely.
These tools provide estimates for informational purposes based on the inputs you enter. For significant borrowing decisions, debt difficulties or complex tax situations, we always recommend consulting a qualified financial adviser or a free debt charity. StepChange (0800 138 1111) and Citizens Advice provide free, confidential debt help to anyone in the UK.
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