How to use it
- Enter the amount you borrow, after your deposit.
- Enter your annual interest rate and term in years.
- Press Calculate.
- Compare total interest, not just the monthly payment, when you try a longer term or a different rate.
Worked example
Home price £250,000, deposit £25,000, loan £225,000, rate 4.5% per year, term 25 years (300 payments). Monthly payment £1,250.62. Total paid £375,186.92. Total interest £150,186.92. Over 30 years at the same rate the monthly payment falls to about £1,140.04, but total interest rises to about £185,415.10 — £35,228.18 more interest overall.
Formula, in simple words
For a fixed-rate repayment mortgage: monthly payment = loan × monthly rate × (1 + monthly rate)months ÷ ((1 + monthly rate)months − 1). In the UK, council tax and buildings insurance are usually paid separately, not inside the mortgage payment.
Frequently asked questions
Does a mortgage payment include council tax in the UK? No, in most cases council tax is paid separately to your local council.
Is a 25-year or 30-year mortgage better? A 25-year term usually costs less total interest, while a 30-year term gives a lower monthly payment. Compare both totals before you decide.
Is this the same as a lender's offer? No, this is an estimate for learning and planning. A lender will do affordability and credit checks and may offer a different rate, term or amount.
Related: Compound Interest · Tip Calculator · All calculators
Results are estimates for information only, not financial advice. Your actual payment may differ — please check with your lender or adviser before deciding.