Mortgage Repayment Calculator
Calculate your monthly repayment on a capital repayment mortgage. Enter the loan amount, annual interest rate, and term to see your monthly payment and total interest cost.
How it's calculated
Monthly payment = P × (r(1+r)ⁿ) ÷ ((1+r)ⁿ − 1)
where P = loan amount, r = monthly interest rate, n = total months.
Frequently Asked Questions
- What is the difference between a repayment and interest-only mortgage?
- A repayment mortgage reduces the outstanding balance each month (capital + interest). An interest-only mortgage means you only pay interest monthly — the full loan must be repaid at the end of the term.
- How does the interest rate affect my monthly payment?
- Even a 0.5% change in interest rate can significantly affect monthly payments on larger loans. On a £200,000 mortgage over 25 years, the difference between 4% and 4.5% is around £55 per month.
- What is a typical UK mortgage term?
- The most common mortgage term in the UK is 25 years, though 30 and 35-year terms are increasingly popular to reduce monthly payments. Shorter terms (15–20 years) save substantial interest overall.