How a secured loan payment is worked out
A secured loan is backed by something you own, such as a home, a car, savings or other property. The lender can take that asset if you do not repay, which is why the rate can be lower or the amount larger than on an unsecured loan, but the asset is at risk. This calculator charges the interest rate you enter monthly at one twelfth of the yearly rate, on the loan including any fees added to it, and you repay in equal monthly payments.
With the example inputs, a loan of 30,000 over 10 years at 8% costs 363.98 a month. That is 43,677.93 to repay in all, of which 13,677.93 is interest. The 8% is only an example: enter the rate from your offer. The examples on this page show plain amounts so they read the same in any currency.
Worked example with fees
Suppose the offer has an arrangement fee of 1.5% of the loan, a broker fee of 1,200 and 450 for the valuation. On a 30,000 loan that is 450 plus 1,200 plus 450, which is 2,100 in fees. If the fees are added to the loan, you borrow and pay interest on 32,100. The payment rises to 389.46 a month and the total repayable is 46,735.39. The total charge for credit, everything you pay beyond the 30,000 you receive, is 16,735.39, and the APR including fees is 10.01%.
If you pay the same fees in cash at the start instead, the loan stays 30,000 and the payment stays 363.98, but you pay the 2,100 from your own pocket, so the APR including fees is 10.14%. Which applies is set by your lender's offer: choose it in the fees field.
APR including fees and local rules
The APR including fees is the yearly rate that makes the cash you receive equal to everything you repay, fees included. On the fees-added example it is 10.01%, against an interest rate of 8%. It is shown as an effective annual rate, with the monthly rate compounded over 12 months. The calculator also shows the same figure as a nominal rate, the monthly rate times 12, which is 9.58%.
Countries and lenders do not all quote an APR the same way, and which costs count as fees in it depends on local rules. Use this figure to compare offers on the same footing, and treat the figure in your lender's own disclosure as the one that applies to your loan.
An introductory rate, then a later rate
Some offers charge a lower rate for the first years and a higher one after. Enter the years at the first rate and the rate that follows. On a loan of 80,000 over 15 years at 6.5% for 2 years, then 11%, the payment is 696.89 a month for the first 24 months and 884.69 after that. The total repayable is 154,736.96 and the APR including fees is 10.07%.
The later payment is worked out on the balance left after the introductory period, over the months that remain. The calculator needs the later rate to be known, so it cannot predict a variable rate.
Loan to value and the most you could borrow
Loan to value (LTV) is the debt secured on the asset as a share of its value. Enter the asset's value, anything already owed on it and your lender's maximum LTV. With an asset worth 100,000, 20,000 already owed and a new loan of 30,000, the LTV after this loan is 50.00%. At a lender limit of 70% the most you could borrow is 50,000.
This calculator counts fees added to the loan as part of the debt, since they are borrowed against the same asset. Lenders value the asset themselves and set their own limits, so use their figures when you have them. The 70% shown is only an example.
Choosing a term
A longer term lowers the payment but costs more interest. On the 30,000 example loan at 8%, 5 years costs 608.29 a month, 15 years costs 286.70 and 25 years costs 231.54. Over 20 years the payment is 250.93 and the total repayable is 60,223.68. The results list the payment and the total repayable at 5, 10, 15, 20 and 25 years so you can compare them at once.
What a monthly budget could borrow
Enter what you can pay each month and the calculator works backwards. A budget of 350 a month at 8% over 10 years could repay a loan of up to 28,847.52, after taking off any fees added to the loan. It uses the first interest rate for the whole term.
What this calculator leaves out
It assumes equal monthly payments and at most one change of rate. It leaves out early repayment charges, exit fees, insurance, taxes and monthly account fees, and it does not check that you qualify. The lender decides the rate, the fees and the limit. If you are unable to make your payments on a secured loan, the lender may take the asset.
If you could borrow without putting up an asset, compare with the personal loan calculator.
Use the right country page
This page is for anyone borrowing against an asset outside the countries below, and it applies no country's rules. If you are in the UK or the US, the country pages use local terms and fees.
The UK secured loan calculator covers second charge loans with a broker fee and an APRC.
The US secured loan calculator covers loans secured by savings, a certificate, a vehicle or a home, with an origination fee.
Inputs for the secured loans calculator
Amount to borrow
The loan you receive, before any fees added to it.
Loan term
How many years you will take to repay the loan.
Interest rate
The yearly rate on your offer, charged monthly at one twelfth. The 8% shown is only an example.
Introductory rate period
Years at the first rate before the later rate applies. Enter zero if the rate never changes.
Interest rate after the introductory period
The rate once the introductory period ends. Used only when you enter an introductory period.
Arrangement fee
A percentage of the loan, from your offer. Enter zero if there is none.
Broker or agent fee
The fee your broker or agent quotes, as an amount. Enter zero if there is none.
Valuation and other fees
Valuation, legal and other fixed costs from your offer, as an amount.
Fees are
Whether the fees are added to the loan, so you pay interest on them, or paid in cash at the start.
Value of the asset
What your home or other asset is worth, used for the loan to value.
Existing loans on the asset
What you still owe on loans already secured on the same asset. Enter zero if none.
Lender's maximum loan to value
The highest share of the asset's value your lender will lend against. The 70% shown is only an example.
Monthly budget for repayments
What you can afford each month, to see how much that could borrow.
CALCULATOR QUESTIONS
Secured loans calculator questions
What is a secured loan?
A loan that uses an asset you own, such as a home or a car, as collateral. If you are unable to make your payments, the lender may take the asset.
Why is the APR including fees higher than the interest rate?
Because fees are counted as a cost of the loan. On the fees-added example the interest rate is 8% and the APR including fees is 10.01%.
Should fees be added to the loan or paid up front?
Adding them means you pay interest on them for the whole term, so the monthly payment rises. Paying in cash keeps the payment at 363.98 on the example but needs the money at the start.
What loan to value will a lender accept?
Each lender sets its own limit and it can depend on the size and type of loan. Enter yours; the 70% shown is only an example.
Is the APR here the same as the one on my offer?
Not necessarily. The way an APR is quoted and the costs it includes depend on local rules, so the figure in your lender's disclosure is the one that applies.
Can I use my own currency?
Yes. Pick it above the form. Only the display changes, the calculation is the same, and no amount is converted for you.
Is there a calculator for my country?
There are pages for the UK and the US, linked above the inputs, with local terms and fees. Elsewhere, this page works from the rate, fees and term on your offer.