Mortgage Payment Calculator
Work out your monthly mortgage payment, total interest, and loan-to-value ratio — and see how overpaying could shorten your term and save you thousands.
Your monthly payment (P+I)
£1,169.18
You'll pay £1,169.18 per month for 25 years. Your loan-to-value ratio is 80.0%. Over the life of the mortgage you'll pay £150,754.02 in interest on top of the £200,000.00 you borrowed.
Balance and interest over time
Year-by-year breakdown
| Year | Payments | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | £14,030.16 | £9,906.35 | £4,123.81 | £195,876.19 |
| 2 | £14,030.16 | £9,695.37 | £4,334.80 | £191,541.39 |
| 3 | £14,030.16 | £9,473.59 | £4,556.57 | £186,984.82 |
| 4 | £14,030.16 | £9,240.47 | £4,789.70 | £182,195.12 |
| 5 | £14,030.16 | £8,995.42 | £5,034.74 | £177,160.38 |
Formula
A standard amortising mortgage uses the same formula as any other fixed-rate loan:
M = P × r(1+r)n / ((1+r)n − 1),
where P is the loan amount (home price minus deposit), r is
the monthly rate (annual rate divided by 12), and n is the term in months.
With a 25- or 30-year term this means early payments are mostly interest and later payments
are mostly principal — the chart above shows the crossover. Optional taxes and insurance are
added directly to the monthly outflow without affecting the schedule.
Related calculators
Frequently asked questions
What's the difference between fixed-rate, tracker, and SVR mortgages?▾
A fixed-rate mortgage locks your interest rate for a set period (typically 2, 5, or 10 years), then reverts to the lender's standard variable rate (SVR) unless you remortgage. A tracker follows a benchmark rate (usually the Bank of England base rate) plus a margin, so your payment moves up and down with it. SVR is the lender's default rate after a fixed or tracker deal ends — usually higher than headline rates, which is why most borrowers remortgage. This calculator assumes a single fixed rate for the full term.
Does this calculator include stamp duty or other purchase costs?▾
No — those are one-time costs, not part of your monthly payment. We're planning a separate Stamp Duty Calculator (UK-specific because rates and thresholds change with the Budget). For now, treat your mortgage payment and your purchase costs as two separate budgets.
What about council tax and buildings insurance?▾
In the UK, council tax and buildings insurance are typically paid separately from the mortgage — your lender doesn't bundle them. Leave the 'Annual property tax' and 'Annual insurance' fields at 0 unless you specifically want to model them as part of your monthly outflow. The optional 'Tax & insurance' section is most useful for users in markets that bundle these costs.
How much can I borrow on my income?▾
Most UK lenders cap mortgages at 4–4.5× your annual income, sometimes stretching to 5× for strong applicants or specific schemes. Your actual offer depends on your credit history, deposit size, monthly outgoings, and the lender's stress-test of higher rates. This calculator works the other way — you tell it the loan amount and it tells you the payment. For an income-led estimate, use a separate affordability calculator or speak to a broker.
Should I overpay my mortgage?▾
Often yes — overpayments hit principal directly, so they save compound interest over the remaining term. Most fixed-rate UK mortgages allow overpayments of up to 10% of the outstanding balance per year without penalty; check your agreement before exceeding that. The 'Extra monthly payment' field above shows the impact in months saved and interest saved.