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Loan Calculator
Enter your loan amount, interest rate, and term to see your exact monthly payment, total interest paid, and full repayment cost. Works for mortgages, car loans, and personal loans.
Currency
Loan type
£
%
yrsmo
How to use the Loan Calculator
Choose repayment or interest-only
A repayment mortgage reduces the capital balance each month, so you own the property outright at the end of the term. Interest-only pays only the interest each month — the capital balance stays the same and must be repaid separately.
Enter the loan details
Enter the loan amount, annual interest rate as a percentage (e.g. 5.5 for 5.5%), and the loan term in years and months. All results update instantly.
Read the monthly payment and totals
The hero card shows your monthly payment. Below it, the secondary grid shows total repayment, total interest, and interest as a percentage of the loan amount. The split bar visualises principal vs interest visually.
Review the amortisation schedule
The year-by-year table shows opening balance, principal paid, interest paid, and closing balance for each year of the loan. Click 'Show all years' to see the full schedule for longer mortgages.
About this Loan Calculator
Our loan calculator uses the standard reducing-balance (amortising) formula to calculate monthly repayments for mortgages, personal loans, car loans, and any other fixed-rate instalment loan. The formula is: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is the principal, r is the monthly interest rate, and n is the total number of months. The amortisation schedule breaks down each year of the loan into opening balance, principal repaid, interest paid, and closing balance. In the early years of a repayment mortgage, most of the payment goes to interest. As the balance decreases, a larger proportion goes to principal — this is the "front-loading" effect of amortising loans that makes overpayments particularly powerful in the early years. The interest-only calculator is relevant for buy-to-let mortgages and some residential mortgage arrangements. It shows the monthly interest cost without any capital reduction. Note that with an interest-only mortgage, the original loan balance must be repaid separately at the end of the term — typically from savings, an investment vehicle, or the sale of the property. Our calculator highlights this requirement clearly.
Frequently Asked Questions
Monthly payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of months. Our calculator handles this formula automatically.
Even a small rate difference has a big impact over time. On a $200,000 30-year mortgage, the difference between 5% and 6% interest adds roughly $120/month and over $40,000 in total interest paid.
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees, giving a fuller picture of the loan's true cost. Always compare APR when shopping for loans.
With a repayment mortgage, each monthly payment covers interest plus a portion of the capital, so the balance reduces to zero by the end of the term. With an interest-only mortgage, monthly payments cover only the interest — the capital balance stays constant and must be repaid in full separately, usually from savings or the sale of the property.
Overpayments reduce the outstanding capital balance, which means less interest accrues in subsequent months. Even small regular overpayments can significantly reduce the total interest paid and shorten the loan term. Overpayments are most effective early in the term when the balance is highest. Check your lender's terms — many allow up to 10% overpayment per year without penalty.
The three main factors are: loan amount (higher principal = higher payment), interest rate (even 0.5% makes a big difference on large loans over long terms), and loan term (a 25-year mortgage has higher monthly payments than a 30-year mortgage for the same amount, but costs less total interest). Use our calculator to see the effect of adjusting each variable.