Mortgage Calculator
Calculate mortgage repayments with deposit, term and repayment type options. Review the full breakdown and watch the balance change on the graph.
Mortgage inputs
Enter the property price, deposit, interest rate, mortgage term and repayment type. You can also add a product fee and monthly overpayments.
Mortgage summary
These results update instantly so you can see how deposit size, mortgage term and repayment type change the monthly payment and total cost.
| Property price | £0.00 |
|---|---|
| Deposit amount | £0.00 |
| Deposit percentage | 0.00% |
| Mortgage amount | £0.00 |
| Repayment type | Capital repayment |
| Term selected | 0 years |
| Actual payoff term | 0 months |
| First month interest | £0.00 |
| First month principal | £0.00 |
| Balance after 5 years | £0.00 |
| Product fee | £0.00 |
| Monthly overpayment | £0.00 |
Balance graph
The graph shows the mortgage balance over time. Switch between repayment types or add overpayments to see how quickly the balance changes.
Repayment breakdown
Inspect the amortisation schedule month by month, or switch to annual checkpoints if you want a shorter summary view.
| Period | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| Month 1 | £0.00 | £0.00 | £0.00 | £0.00 |
How to Use a Mortgage Calculator: A Complete Beginner’s Guide
A mortgage calculator is a powerful tool that helps you estimate your monthly home loan payments, total interest, and affordability. Whether you’re buying your first home or refinancing, understanding how to use a mortgage calculator can save you time and money.
What Is a Mortgage Calculator?
A mortgage calculator is an online tool that helps you estimate your monthly mortgage payments based on factors like loan amount, interest rate, loan term, and down payment.
Key Inputs You Need
- Loan Amount: The total amount you plan to borrow.
- Interest Rate: The annual interest rate offered by the lender.
- Loan Term: The length of your mortgage (e.g., 15, 20, or 30 years).
- Down Payment: The upfront amount you pay toward the home.
- Property Taxes & Insurance: Optional but useful for accurate estimates.
Step-by-Step Guide to Using a Mortgage Calculator
1. Enter the Home Price
Start by inputting the total price of the property you’re interested in.
2. Add Your Down Payment
Enter the amount you plan to pay upfront. A higher down payment reduces your loan amount and monthly payments.
3. Input the Interest Rate
Use an estimated or quoted rate from lenders. Even small changes in interest rates can significantly impact your payments.
4. Choose the Loan Term
Select how long you’ll repay the loan. Shorter terms mean higher monthly payments but less interest overall.
5. Include Additional Costs
Add property taxes, insurance, and possibly HOA fees for a more realistic monthly estimate.
6. Review Your Results
The calculator will show your estimated monthly payment, total interest paid, and overall loan cost.
Example Calculation
If you borrow £250,000 at a 5% interest rate over 25 years, your estimated monthly payment will be calculated instantly, helping you assess affordability before committing.
Why Use a Mortgage Calculator?
- Quickly estimate monthly payments
- Compare different loan scenarios
- Plan your budget effectively
- Understand long-term interest costs
Tips for Better Results
- Try different interest rates to see how they affect payments
- Adjust loan terms to find the best balance
- Include all costs for accurate budgeting
- Use it regularly while house hunting
Common Mistakes to Avoid
- Ignoring taxes and insurance
- Using unrealistic interest rates
- Not factoring in maintenance costs