Mortgage calculator
See your monthly mortgage payment, total interest and how the balance falls each year, for repayment or interest-only mortgages in any currency.
Covers any country Runs in your browser
Year-by-year balance
| Year | Paid this year | Interest | Balance left |
|---|
How the monthly payment is worked out
A repayment mortgage has a fixed monthly payment that covers that month’s interest and pays off a slice of the loan. Early on most of the payment is interest; by the end almost all of it is paying down the balance. The standard formula is:
Payment = L × r × (1 + r)n ÷ ((1 + r)n − 1), where L is the amount borrowed, r is the monthly interest rate (the yearly rate ÷ 12) and n is the number of monthly payments.
Example: a £350,000 home with a £35,000 deposit means borrowing £315,000. At 4.5% over 25 years (300 payments), r is 0.00375 and the payment comes to £1,750.87 a month. Over the full term you would pay £210,261.69 in interest.
What changes the payment most
- The rate. On the same £315,000 over 25 years, a rate of 5.5% instead of 4.5% raises the payment to £1,934.38, about £184 more each month.
- The term. Stretching to 30 years at 4.5% lowers the payment to £1,596.06, but total interest rises to £259,581.14. A longer term is cheaper each month and dearer overall.
- The deposit. A bigger deposit means a smaller loan, and lenders usually offer lower rates at lower loan-to-value bands (often stepping at 60%, 75%, 80%, 85%, 90% and 95%).
Repayment or interest only
With interest only you pay just the interest each month (£1,181.25 in the example above) and still owe the full £315,000 at the end of the term. You need a separate plan to repay it, such as savings, investments or selling the property. Lenders usually ask to see that plan before agreeing.
Notes for each country
- United States: lenders quote principal and interest, but your actual monthly bill usually adds property tax and homeowner’s insurance, and private mortgage insurance (PMI) if you put down less than 20%. Budget for these on top of the figure here.
- Canada: fixed-rate mortgages are compounded semi-annually, not monthly, and this calculator does the same when you choose Canada. That makes the payment slightly lower: borrowing 315,000 at 4.5% over 25 years costs 1,743.44 a month in Canada instead of 1,750.87. A down payment under 20% needs mortgage default insurance, which is added to the loan.
- United Kingdom: Stamp Duty Land Tax (or LBTT in Scotland and LTT in Wales), solicitor’s fees and any arrangement fee are paid separately and are not included here.
- Australia and New Zealand: many loans let you pay fortnightly. Paying half the monthly amount every two weeks makes 26 half-payments a year, which equals 13 monthly payments and shortens the loan.
- UAE and Saudi Arabia: the central banks set maximum loan-to-value limits, which are lower for non-nationals and for second homes. Islamic home finance (ijara or murabaha) uses a profit rate instead of interest, but the monthly amount is calculated in the same way, so you can enter the profit rate as the interest rate.
Limits of this calculator
It assumes the rate stays the same for the whole term. Most mortgages have a fixed or introductory rate for a few years and then move to a different rate, so treat the long-term totals as a guide. Your lender’s offer document shows the exact figures, including fees.
Spotted a figure that's wrong or out of date? Tell us and we'll check it against the source.