How do I use this calculator?
Select your desired loan and repayment amounts. Our calculator will then give you an illustrative example of your monthly repayments and an estimate of the total interest you'd pay. This tool isn't a loan application, nor should you rely on any figures presented, which are all subject to application and status. You can use this tool as an easy way to see what fits your budget at a glance.
How are loan repayments worked out?
Your monthly loan repayments are shaped by three things:
How much you borrow: the bigger the loan, the bigger the repayments (usually).
The loan term: a longer repayment period means lower monthly payments but you’ll likely pay more interest overall. A shorter term means higher monthly payments but less interest.
The interest rate (APR): this is the cost of borrowing. A higher rate means more interest added to your repayments.
What is APR on a loan and how is it calculated?
APR stands for Annual Percentage Rate, and it shows you how much it’d cost to borrow money for one year, taking into account the interest rate and other fees (although we don’t charge fees for Monzo loans). It’s a standard way to compare the cost of different loans. Our loan calculator shows you the ’representative APR’, which is a good estimate of the rate you might receive. Just bear in mind that your actual rate could be different based on your personal circumstances.
What is representative APR?
Representative APR stands for Representative Annual Percentage Rate. It's the interest rate (and any compulsory fees) that at least 51% of customers taking out a specific loan from a lender are expected to receive. It's a standard figure that helps you compare the cost of different loans across different providers, giving you a good idea of what rate you might be offered. However, it's worth remembering that the actual APR you get could be different, as it depends on your individual financial circumstances.
Can I pay my loan back early?
Yes! With Monzo, you can always make extra payments on your loan whenever you like, or even pay it off in full before the end of your term, without any early repayment fees. Paying a loan off early will help you save on interest and become debt-free sooner.
What credit score is needed for a personal loan?
There isn’t a particular score that means you qualify for a loan, as lenders (including Monzo) look at lots of different factors in your financial history, not just your credit score. Things like your income, existing debts, and how you’ve managed credit in the past all play a part. Generally, a healthy credit history shows lenders you’re a reliable borrower, which could help your application.
What's the difference between fixed and variable interest rates?
Fixed interest rates stay the same throughout your entire loan term. This means your monthly repayments won’t change, which can make budgeting easier. Variable interest rates can go up or down during your loan term, usually in line with the Bank of England base rate. This means your monthly repayments could change, giving you a bit less certainty. Monzo personal loans typically offer a fixed rate.
Can I use this calculator for different types of loans?
Our calculator is specifically designed to help you estimate repayments for a personal loan. While the basic principles of calculating interest and repayments are similar for other loan types (like mortgages and car finance), the terms, fees, and interest rate structures can vary hugely. So it's best to use a calculator tailored to the specific type of loan you're looking for.