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Monthly repayments are M = L × r ÷ (1 − (1 + r)^−n), where L is the amount borrowed, r is the monthly interest rate and n is the number of months. UK lenders quote an APR, which is an annual rate, so the calculator converts it to the equivalent monthly rate. For example, £15,000 over 5 years at 7.9% APR costs about £301.48 a month and £3,089 in interest.

Yes, overall. Monthly payments are higher, but you pay interest for less time. £15,000 at 7.9% APR costs about £467 a month and £1,829 in interest over 3 years, against £301 a month and £3,089 over 5 years.

For hire purchase (HP), put the car's price in the first box and your deposit or part-exchange in the second. A £20,000 car with a £4,000 deposit over 4 years at 9.9% APR costs about £402 a month and £3,286 in interest.

Not exactly. With PCP, part of the price is deferred into a final "balloon" payment, so monthly payments are lower than HP and you choose at the end whether to pay it, hand the car back or part-exchange. This calculator works out HP and personal loans, where the full amount is repaid over the term.

The advertised "representative APR" only has to be offered to 51% of successful applicants, so the rate you're offered can be higher depending on your credit history. Many lenders show a personalised rate using a soft search, which doesn't affect your credit score.

The monthly payment is M = L × r ÷ (1 − (1 + r)^−n), where L is the amount borrowed after any deposit and n is the number of months. UK lenders quote an APR, which is an annual rate including compounding, so r is the equivalent monthly rate: (1 + APR)^(1/12) − 1. Each payment covers that month's interest and repays part of the loan.

It works out personal loans and hire purchase, where the whole amount is repaid over the term. It doesn't model PCP balloon payments, payment holidays or early settlement. Your actual APR depends on your credit history.