Mortgage Calculator Guide
What is the Mortgage Calculator?
A mortgage calculator estimates your monthly repayment for a home loan. It uses the principal amount, annual interest rate, and loan term to compute precise monthly payments using the standard amortisation formula.
How to calculate it manually
M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P = loan amount, r = monthly interest rate (annual ÷ 12), and n = total number of monthly payments (years × 12).
Frequently Asked Questions
No — principal and interest only. Property taxes, home insurance and service charges are separate and should be budgeted for in addition.
Even a small rate change has a big impact. On a £200,000 loan over 25 years, an extra 1% adds roughly £100 per month and thousands in total interest.
A month-by-month breakdown showing how each payment splits between interest and principal. Early payments are mostly interest; later ones reduce the principal faster.
A shorter term means higher monthly payments but far less total interest paid. A 25-year term is more manageable month-to-month but costs significantly more overall.