How Much Is a £10,000 Loan per Month?
Short answer: a £10,000 loan at 7.9% APR costs £200.99 a month over 5 years, £2,059.19 in interest. A £30,000 loan at the same rate is £602.96 a month over 5 years. The tables below cover £5,000 to £30,000 at different rates and terms.
How loan repayments are worked out
UK lenders quote the cost of a loan as an APR (annual percentage rate). It includes the interest and any compulsory fees, so it is the number to compare between lenders. To get a monthly payment, the APR is turned into a monthly rate and the loan is paid off in equal instalments.
Repayment = amount × r ÷ (1 - (1 + r)^-months)
Each payment covers that month's interest first and the rest reduces the balance. Early on most of the payment is interest; by the end almost all of it is capital.
Monthly repayments by amount and term at 7.9% APR
7.9% is used here only as an example rate. Your rate depends on your credit record, the amount and the lender.
| Amount | 3 years | 5 years | 7 years |
|---|---|---|---|
| £5,000 | £155.82 | £100.49 | £77.01 |
| £10,000 | £311.65 | £200.99 | £154.01 |
| £15,000 | £467.47 | £301.48 | £231.02 |
| £20,000 | £623.30 | £401.97 | £308.03 |
| £25,000 | £779.12 | £502.47 | £385.03 |
| £30,000 | £934.95 | £602.96 | £462.04 |
At a fixed rate and term, the repayment scales in a straight line with the amount: £20,000 costs twice as much a month as £10,000.
How the APR changes the cost of £10,000 over 5 years
| APR | Monthly | Total interest | Total repaid |
|---|---|---|---|
| 5.9% | £192.15 | £1,529.01 | £11,529.01 |
| 7.9% | £200.99 | £2,059.19 | £12,059.19 |
| 9.9% | £209.91 | £2,594.46 | £12,594.46 |
| 14.9% | £232.53 | £3,951.59 | £13,951.59 |
| 19.9% | £255.50 | £5,329.80 | £15,329.80 |
| 29.9% | £302.05 | £8,123.29 | £18,123.29 |
Going from 5.9% to 19.9% adds only about £63 a month, but more than triples the interest. That is why a small difference in the monthly figure can hide a big difference in total cost.
What a £30,000 loan costs by term (7.9% APR)
| Term | Monthly | Total interest | Total repaid |
|---|---|---|---|
| 1 year | £2,604.49 | £1,253.88 | £31,253.88 |
| 2 years | £1,351.73 | £2,441.50 | £32,441.50 |
| 3 years | £934.95 | £3,658.05 | £33,658.05 |
| 4 years | £727.15 | £4,903.44 | £34,903.44 |
| 5 years | £602.96 | £6,177.56 | £36,177.56 |
| 6 years | £520.56 | £7,480.26 | £37,480.26 |
| 7 years | £462.04 | £8,811.36 | £38,811.36 |
Worked example: £30,000 over 3, 5 or 7 years
At 7.9% APR over 5 years the repayment is £602.96 a month and you pay back £36,177.56, so the loan costs £6,177.56 in interest.
Stretching it to 7 years cuts the payment by £140.92 to £462.04, but adds £2,633.80 of interest (£8,811.36 in total). Shortening it to 3 years raises the payment to £934.95 and saves £2,519.51 of interest compared with 5 years.
Tips before you borrow
- Compare the APR and the total repayable, not just the monthly figure. Both are shown on the loan quote and agreement.
- Pick the shortest term you can comfortably afford. A payment that leaves no slack in your budget is a risk if your costs rise.
- Use eligibility checkers. Many lenders offer a soft search that shows your likely rate without leaving a mark on your credit file.
- Check for early repayment charges if you might pay the loan off early.
- Know what you can take home. The take home pay calculator shows your monthly pay after tax and National Insurance, and our guide to £30,000 after tax gives a worked example.
Borrowing for a house is a different product with much longer terms: see the mortgage repayment calculator. For money you are saving rather than borrowing, the compound interest calculator uses the same maths in reverse.
Try the loan repayment calculator
Enter your own numbers below, or open the full loan repayment calculator with the formula and more examples.
This guide is general information with example numbers, not financial, tax or building advice. Your costs and results will differ. Terms
Frequently asked questions
How much is a £10,000 loan over 5 years?
At 7.9% APR it is £200.99 a month, and you repay £12,059.19 in total, so £2,059.19 of interest.
How much would a £30,000 loan cost per month?
At 7.9% APR it is £934.95 over 3 years, £602.96 over 5 years or £462.04 over 7 years.
How much is a £20,000 loan over 5 years?
At 7.9% APR it is £401.97 a month.
Is a longer loan cheaper?
The monthly payment is lower but the total cost is higher. £30,000 at 7.9% costs £6,177.56 in interest over 5 years and £8,811.36 over 7 years.