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Mortgage Calculator
Enter your home price, down payment, interest rate, and loan term to see your monthly mortgage payment, total interest, and full cost of the loan. Includes a year-by-year amortization schedule.
Currency
£
= £30,000
%
Monthly payment
£1,658.04
25-year fixed · 5.5% APR
Loan amount
£270,000
Down payment
10.0%
Total interest
£227,411
Total cost
£527,411
Loan amount vs. total interest
Principal (54%)Interest (46%)
For illustrative purposes only
This calculator provides estimates based on a fixed interest rate. Actual mortgage payments depend on your lender, credit score, property taxes, insurance, and loan type. Rates change daily. Consult a mortgage adviser or lender for accurate quotes tailored to your circumstances.
How to use the Mortgage Calculator
Enter the home price
Type the total purchase price of the property. This is the full price before any deposit is subtracted.
Set your down payment
Enter your deposit as a percentage of the home price (e.g. 10%) or as a fixed amount. Most lenders require at least 5–10%, and 20% or more gives access to the best rates.
Enter the interest rate
Use the annual interest rate you've been quoted or want to model. Try different rates to see how much difference even 0.5% makes to the total cost.
Choose your loan term
Select 10, 15, 20, 25, or 30 years. A shorter term means higher monthly payments but far less total interest. A longer term lowers monthly payments but increases overall cost.
About this Mortgage Calculator
A mortgage is the largest financial commitment most people will ever make — and understanding the numbers behind it is essential. The monthly payment figure your lender quotes is calculated using the standard amortization formula, which spreads the loan plus interest evenly across every payment so the loan reaches exactly zero at the end of the term. What surprises many first-time buyers is just how much of the early payments go to interest rather than reducing the principal. In the first year of a 25-year mortgage at 5.5%, over 70% of each payment is pure interest. This gradually shifts as the balance reduces — by the final years, nearly all of each payment is principal. The amortization table in our calculator makes this visible year by year. The down payment matters for two reasons. First, a larger deposit reduces the loan amount and therefore every monthly payment. Second, lenders charge higher rates to borrowers with small deposits because they carry more risk. Crossing the 20% deposit threshold typically unlocks significantly better rates in most markets. Loan term is the other major lever. Extending from 25 to 30 years can reduce your monthly payment by 10–15%, but you'll pay tens of thousands more in total interest over the life of the loan. Shortening to 15 or 20 years costs more monthly but builds equity faster and saves a substantial amount. Use the term selector to compare your options side by side. This calculator uses fixed-rate mortgage logic. Variable-rate, tracker, and offset mortgages work differently and will vary over time. Consult a mortgage broker or financial adviser before making any borrowing decisions.
Frequently Asked Questions
The formula is M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). For example, a $270,000 loan at 5.5% for 25 years gives a monthly rate of 0.004583. The monthly payment works out to approximately $1,653. Our mortgage calculator handles this instantly.
Most lenders require a minimum deposit of 5–10% of the property price, though a 20% deposit typically gives you access to the best mortgage rates and avoids private mortgage insurance (PMI) or lender's mortgage insurance (LMI) in some countries. A larger deposit reduces your loan-to-value ratio, making you a lower risk borrower.
An amortization schedule shows how each mortgage payment is split between principal and interest over the life of the loan. Early payments go mostly to interest; later payments go mostly to principal. Our calculator shows a year-by-year summary so you can see how your balance reduces over time.
A 15-year mortgage has higher monthly payments but significantly lower total interest — often 50–60% less than a 30-year loan for the same amount. A 30-year mortgage offers lower monthly payments and more cash flow flexibility, but you pay far more interest overall. Use our calculator to compare the total cost of different terms side by side.
Even a small change in interest rate has a large effect on total cost. On a $300,000 25-year mortgage, the difference between 4.5% and 5.5% is about $155/month — and over $46,000 in total interest. Improving your credit score and shopping multiple lenders can make a significant difference to the rate you're offered.