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Mortgages & MoneyLive

Mortgage Repayment Calculator

Estimate monthly repayments and total interest on a UK mortgage at any rate and term.

Short answer

Monthly mortgage payment = P × r ÷ (1 − (1+r)^-n), where P is loan, r is monthly rate (annual ÷ 12), and n is months. A £200k loan at 4.5% over 25 years = ~£1,112/month. Total interest over the life is typically 60–100% of the loan.

Loan details

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How it works

This is the standard amortising mortgage formula. Each monthly payment is split between interest (charged on the remaining balance) and principal (reducing the balance). Early payments are mostly interest; later payments are mostly principal.

Worked example

£200,000 loan, 4.5% rate, 25 years: monthly payment £1,112, total paid £333,524, total interest £133,524. Same loan over 30 years: £1,013/month but £164,813 total interest.

Who should use this

  • Buyers comparing 25 vs 30 vs 35 year terms
  • Anyone modelling rate-rise scenarios
  • Homeowners checking overpayment impact

Common mistakes

  • ×Picking the longest term to lower monthly payment without understanding total interest cost
  • ×Ignoring product fees (often £999) which add to true cost
  • ×Forgetting buildings insurance and life cover are mandatory
  • ×Not stress-testing at +2% in case rates rise at remortgage

Frequently asked questions

Should I overpay my mortgage?

Most lenders allow 10%/year overpayments penalty-free. Even £100/month extra can save tens of thousands and shave years off the term.

Is interest-only cheaper?

Monthly payments are lower but you owe the full capital at the end. Used mainly for buy-to-let now.

What is APRC?

Annual Percentage Rate of Charge — includes the rate plus fees over the whole term, not just the fixed period.

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