How it works
Enter the loan amount, the annual interest rate and the term in years. We use the standard amortisation formula in your browser to show the monthly payment, total paid and total interest.
In detail
This calculator estimates the monthly payment on a capital-and-interest repayment mortgage for UK buyers in 2026/27. A repayment mortgage clears the debt by the end of the term as long as every payment is made. It is the most common type of mortgage for residential purchases in the UK.
How the monthly payment is calculated
We use the standard amortisation formula for a repayment mortgage:
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 monthly payments (term in years × 12).
What affects your monthly payment?
- Interest rate: the single biggest lever — a 1% change on a large loan moves the monthly figure noticeably. Shop around and compare APRC, not just the headline rate.
- Term: a longer term lowers the monthly payment but increases the total interest paid over the life of the loan.
- Deposit / loan-to-value (LTV): a bigger deposit means a smaller loan, lower monthly payments, and usually access to better interest rates. Most lenders ask for at least 5–10%.
- Fees: arrangement fees, valuation fees and legal costs are not included in this calculation.
Worked examples
£200,000 loan over 25 years at 5.0%: Monthly payment ≈ £1,169.18, total paid ≈ £350,754, total interest ≈ £150,754.
Same loan over 30 years at 5.0%: Monthly payment falls to ≈ £1,073.64, but total interest rises to ≈ £186,510 because the debt is outstanding for longer.
£300,000 loan over 25 years at 4.5%: Monthly payment ≈ £1,667.50, total interest ≈ £200,250.
Is this an interest-only mortgage?
No. This calculator is for repayment mortgages, where each payment reduces the loan balance. Interest-only mortgages have lower monthly payments but do not pay down the debt; they require a separate repayment plan such as an ISA, pension or investment.
Don't forget the other purchase costs
Stamp Duty Land Tax, arrangement fees, valuation fees, legal fees and buildings insurance are all part of the real cost of buying. Use our Stamp Duty calculator to budget for SDLT. Always compare quotes from regulated lenders and consider speaking to a mortgage adviser before committing.
Worked example · 计算示例
Worked example: £200,000, 5%, 25 years
Borrow £200,000 at a 5% fixed rate over 25 years (capital & interest):
- Monthly rate: 5% ÷ 12 = 0.4167%.
- Number of payments: 25 × 12 = 300.
- Monthly payment ≈ £1,169.
- Total repaid over 25 years ≈ £350,700, of which ≈ £150,700 is interest.
Rates, fees and taxes are excluded. Overpayments cut the term and total interest. Compare lenders before committing.
计算示例：£200,000，利率 5%，25 年
以 5% 固定利率借 £200,000、期限 25 年（本息同还）：
- 月利率：5% ÷ 12 = 0.4167%。
- 还款期数：25 × 12 = 300。
- 月供约 £1,169。
- 25 年总还款约 £350,700，其中利息约 £150,700。
未含手续费、保险与税。提前还款可缩短期限并减少总利息。签约前请比较各家贷款机构。
FAQ
What is a repayment mortgage?
A repayment (capital-and-interest) mortgage pays off the loan in full by the end of the term, provided all payments are made. Each monthly payment covers interest plus a slice of the original loan.
Does this include stamp duty or fees?
No. It estimates the loan repayment only. You should also budget for stamp duty, arrangement fees, valuation fees, legal costs and insurance.
How can I lower my monthly payment?
Increase your deposit, extend the term, or secure a lower interest rate. Extending the term reduces the monthly cost but raises total interest.
Is the result guaranteed by a lender?
No. This is an estimate using the figures you enter. The actual rate and terms a lender offers depend on your credit history, income, deposit and the property.
What is the difference between interest rate and APRC?
The interest rate is the annual cost of borrowing. APRC (Annual Percentage Rate of Charge) includes the interest rate plus most fees, so it helps compare deals across lenders.
Should I choose a 25-year or 30-year mortgage?
A 25-year term means higher monthly payments but less total interest. A 30-year term means lower monthly payments but more interest overall. Choose based on your monthly budget and long-term cost.
Can I overpay my mortgage?
Most lenders let you overpay a percentage each year without penalty. Overpayments reduce the balance faster and cut total interest. Check your lender's terms.
How much deposit do I need?
Most UK lenders require at least 5–10% of the purchase price, but 15–25% often unlocks better rates. Use this calculator to see how different deposits change the monthly cost.