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Mortgage calculator

Monthly payment, interest, and the effect of paying extra.

Calculated in this page. Nothing you type is sent to a server.

These figures are estimates. They are not a mortgage offer and they are not financial advice.

Monthly payment£1,169.18
Total paid£350,754.02
Total interest£150,754.02
Loan-to-value80.0%
Loan£200,000.00

Cleared in 25 years. Interest is compounded monthly: the monthly rate is the annual rate of 5% divided by 12. That is how lenders usually quote a mortgage. A lump sum is taken off before the first payment. A monthly overpayment is added on top and shortens the term. When an introductory rate ends, the payment is worked out again on what is left and the months still to run.

Balance remaining at the end of each yearStartYear 25
Year-by-year schedule
Opening balance, interest, amount paid and closing balance for each year.
YearOpeningInterestPaidClosing
1£200,000.00£9,906.34£14,030.16£195,876.18
2£195,876.18£9,695.35£14,030.16£191,541.37
3£191,541.37£9,473.58£14,030.16£186,984.79
4£186,984.79£9,240.47£14,030.16£182,195.10
5£182,195.10£8,995.43£14,030.16£177,160.37
6£177,160.37£8,737.83£14,030.16£171,868.04
7£171,868.04£8,467.06£14,030.16£166,304.94
8£166,304.94£8,182.45£14,030.16£160,457.23
9£160,457.23£7,883.28£14,030.16£154,310.35
10£154,310.35£7,568.78£14,030.16£147,848.97
11£147,848.97£7,238.20£14,030.16£141,057.01
12£141,057.01£6,890.72£14,030.16£133,917.57
13£133,917.57£6,525.45£14,030.16£126,412.86
14£126,412.86£6,141.49£14,030.16£118,524.19
15£118,524.19£5,737.89£14,030.16£110,231.92
16£110,231.92£5,313.64£14,030.16£101,515.40
17£101,515.40£4,867.68£14,030.16£92,352.92
18£92,352.92£4,398.91£14,030.16£82,721.67
19£82,721.67£3,906.17£14,030.16£72,597.68
20£72,597.68£3,388.19£14,030.16£61,955.71
21£61,955.71£2,843.72£14,030.16£50,769.27
22£50,769.27£2,271.43£14,030.16£39,010.54
23£39,010.54£1,669.82£14,030.16£26,650.20
24£26,650.20£1,037.43£14,030.16£13,657.47
25£13,657.47£372.71£14,030.18£0.00

Most lenders cap borrowing at around 4 to 4.5 times gross income. Treat that as a rough guide to what is commonly offered, not as a rule. Work out the stamp duty on the purchase separately. This page does not include it.

How to use it

  1. Enter the property price and the deposit, or switch to a loan amount.
  2. Enter the annual interest rate and the term in years and extra months. Choose repayment or interest only.
  3. If the deal starts on a lower rate, enter how many years that lasts and the follow-on rate. Add a monthly overpayment or a lump sum to see the saving.
  4. Read the monthly payment, the total interest and the loan-to-value. Open the year-by-year schedule for the balance.

How the monthly payment is calculated

The rate on this page is compounded monthly. The monthly interest rate is the annual rate divided by 12, which is the way UK lenders usually quote a mortgage. The repayment is then set so that paying it every month clears the loan at the end of the term.

A worked example: £200,000 over 25 years at 5% is £1,169.18 a month. The same loan on interest only is £833.33 a month, and the £200,000 is still owed at the end. These are estimates, not a mortgage offer and not financial advice.

A rate that changes, and paying extra

If you enter an introductory rate, the first payment is worked out as if that rate ran for the whole term. When those years end, the payment is worked out again on the balance left and the months still to go, at the follow-on rate.

A monthly overpayment is added on top of that payment, and a lump sum is taken off before the first month. Both reduce the interest and, on a repayment mortgage, the time. The last payment can differ by a few pence because each month’s interest is rounded to the nearest penny.

Most lenders cap borrowing at around 4 to 4.5 times gross income. That is a rough guide to what they commonly offer, not a rule. Stamp duty is not in this figure. The stamp duty calculator works it out for England and Northern Ireland. A longer explanation of the arithmetic is in how mortgage repayments are worked out.

Questions

Is this a lender’s quote?

No. A lender’s offer depends on the product, the fees and their own credit decision. This page only does the repayment arithmetic.

What is left to pay on interest only?

The original loan, less anything you have overpaid. The monthly figure is the interest, not a repayment of the capital.

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