Secured Loan Calculator

The repayment calculator shows three outputs: the monthly repayment, the total amount repayable over the full term, and the total interest cost. These three figures update instantly as you adjust the amount, term, and APR sliders. The principal vs interest bar below the result shows the proportion of the total repayment that is interest, which gives a quick visual sense of how the cost of borrowing changes at different APR and term combinations.

The term comparison table is the most useful output for most borrowers. Rather than showing a single result, it shows the monthly payment and total interest cost at nine common term lengths simultaneously, all at the amount and APR currently set on the sliders. This makes the trade-off between monthly payment and total cost immediately visible: you can see at a glance that extending from five years to ten years reduces the monthly payment but adds several thousand pounds in interest. The selected term is highlighted in the table, and the insight block below names the adjacent terms and their specific figures so you do not need to adjust the slider to compare.

The LTV calculator works in two steps. The first step takes your property value and outstanding mortgage balance and shows your current equity position alongside the maximum additional borrowing available at each LTV threshold from 70% to 90%. Each row in the table shows the maximum amount at that threshold, whether it is widely available or limited to specialist lenders, and a button to select that amount for the second step.

The second step is a repayment modeller for the selected amount. Once you choose a row in the table, a loan amount slider appears below it, set by default to the full ceiling for that LTV tier. You can drag it down to model a smaller amount within the same tier; the post-loan LTV indicator updates in real time to show what combined LTV your chosen amount would produce. This is useful because borrowing slightly less than the maximum for a given tier can push your combined LTV down enough to access a better rate band. Our guide to understanding loan-to-value ratios for secured loans covers how lenders apply LTV criteria in practice, including what happens if you are close to a threshold.

The crossover chart plots the cumulative total cost of the fixed-rate option and the variable-rate option month by month over the full term. In the early months, the variable option is typically cheaper because it starts at a lower rate. As rates rise at the point you have set on the rate change slider, the variable line steepens and eventually crosses the fixed line. The month at which those two lines cross is the breakeven point: before it, the variable option has cost less in total; after it, the fixed option is cheaper in cumulative terms.

The most practical way to use the chart is to set the rate change timing to when you realistically expect rates to move, and the rate movement to a plausible scenario rather than an extreme. If the breakeven point falls within the first third of the loan term, the fixed rate is likely the more financially cautious choice because protection from further rises justifies the initial premium. If it falls in the final months, the variable option compares well even under a pessimistic rate scenario. Our guide to fixed vs variable rates for secured loans covers which borrower profiles typically suit each structure.

Your loan agreement should state whether an ERC applies and how it is calculated. The two most common structures are a percentage of the outstanding balance at the point of settlement, typically 1% to 5% and often reducing on a sliding scale as the loan matures, and a fixed number of months of interest on the outstanding balance, typically one to six months. Some lenders combine both structures, applying a percentage in the early years that converts to a months-of-interest calculation later. If you are unsure, your lender can confirm the structure and the current applicable rate; they are required to provide a settlement figure on request.

The calculator covers both structures via a tab at the top of the ERC section. Enter the percentage rate or number of months, set the settlement point on the timeline, and the tool shows the gross interest saved by settling early, the ERC charge at that point, and the net saving or cost after the charge. The breakeven chart shows the settlement month at which the net saving turns positive. Our guide to paying off a secured loan early covers what to check in your agreement and when early repayment makes financial sense.

The gross interest saving is the total reduction in interest paid compared with making standard payments throughout the term. It is the saving before any early repayment charge is applied. If overpayments clear the loan before the end of the agreed term, many lenders apply an ERC to the outstanding balance at the point of early settlement. The net saving is the gross interest saving minus that ERC charge; it is the figure that tells you whether overpaying is genuinely cost-effective after all costs are included.

Whether the ERC applies to overpayments, and at what rate, depends on your loan agreement. Many lenders allow a fixed annual overpayment allowance, commonly 10% of the outstanding balance, before any ERC is triggered. If your planned overpayment stays within that allowance, the net and gross savings will be the same because no ERC applies. The calculator models this by letting you toggle the ERC on or off and set the applicable rate; comparing the two scenarios shows the value of staying within the free allowance versus overpaying beyond it.

For most borrowers, the repayment calculator is the natural starting point: it gives a clear picture of the monthly cost and total repayable at different amounts, terms, and APR combinations, and helps you identify a realistic target before anything else. Once you have a target amount in mind, the LTV and equity calculator confirms whether it falls within your borrowing ceiling given your property value and mortgage balance, and models the repayment specifically for your equity position.

With a confirmed amount and term, the fixed vs variable comparator is worth running if you have not yet decided on rate structure, particularly for terms of five years or more. The ERC calculator is relevant if you are leaning towards a fixed rate and want to understand the cost of settling early at different points in the term. The overpayment calculator is most useful once you have agreed a loan and want to model the long-term benefit of paying a little more each month, factoring in any ERC threshold your lender applies. All figures produced are illustrative and are not a substitute for advice from a qualified broker.