What this calculator does
A mortgage payment calculator turns a large borrowing decision into monthly numbers you can compare. Enter the property price, deposit, rate and term to estimate the repayment on a capital and interest mortgage.
Formula used
The calculator uses the standard amortisation formula: monthly payment equals principal multiplied by the monthly rate, multiplied by one plus the monthly rate to the power of the number of payments, divided by that same power minus one.
How to read the result
The monthly payment is principal and interest only. Home insurance, service charge, ground rent, taxes, product fees and early repayment charges are separate costs, so affordability should always include a wider budget view.
Assumptions
- Assumes a repayment mortgage, not interest-only.
- Assumes a fixed interest rate for the full term.
- Does not include fees, insurance, tax, service charges or overpayments.
Sources and checks
Source links are included so you can check important formulas, thresholds and assumptions.
Frequently asked questions
What is loan-to-value?
Loan-to-value, or LTV, is the mortgage amount divided by the property value. A lower LTV usually means more equity and may qualify for better rates.
Why does the term change interest so much?
A longer term spreads payments out, which lowers the monthly payment, but interest accrues for more months. That usually raises the total interest paid.