Mortgage Repayment Calculator - Calculate Your Monthly Payments
Our mortgage repayment calculator helps you work out exactly how much your monthly mortgage payments will be. Whether you're buying your first home or remortgaging, understanding your repayments is essential for budgeting. Enter your loan amount, interest rate, and term to see your monthly payment, total interest, and overall cost. For a more comprehensive experience, try our main mortgage calculator with AI-powered assistance.
How Mortgage Repayment Calculator Works
The mortgage repayment calculator uses a standard amortisation formula to calculate your monthly payments. This formula takes into account the principal (loan amount), interest rate, and term to give you an accurate figure for your budget planning.
The Calculation Formula
Monthly payments are calculated using: M = P × [r(1+r)^n] / [(1+r)^n – 1], where:
- M = Monthly payment
- P = Principal (loan amount)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (term in years × 12)
Key Factors
- Loan amount: The larger the mortgage, the higher your monthly payments
- Interest rate: Even small rate differences significantly impact total cost
- Mortgage term: Longer terms mean lower monthly payments but more interest paid overall
Mortgage Repayment Calculator
Enter your mortgage details below to calculate your monthly repayments.
Our main calculator includes an AI mortgage assistant to help with stamp duty calculations, mortgage comparisons, and personalised advice.
Understanding Your Mortgage Repayment Calculator Results
The mortgage repayment calculator shows you three key figures to help you understand the true cost of your mortgage.
Understanding Your Results
- Monthly Payment: What you'll pay each month. Ensure this is comfortable within your budget, typically no more than 35% of your take-home pay.
- Total Interest: The total interest you'll pay over the full mortgage term. This is often a surprisingly large number—use our overpayment calculator to see how you can reduce it.
- Total Repayment: The complete amount you'll repay (principal + interest). This is the true cost of your mortgage.
Important Considerations
Remember that mortgage rates can change (unless you're on a fixed rate), and your actual payments may include buildings insurance and life insurance if required by your lender. Use our mortgage rates page to compare current deals.
Mortgage in the UK: Current Overview
UK mortgage repayments vary significantly based on the interest rate environment. With rates stabilising in 2026, borrowers are seeing more predictable payment calculations.
| Loan Amount | 25 Years @ 4.5% | 25 Years @ 5.0% | 30 Years @ 4.5% |
|---|---|---|---|
| £150,000 | £834/mo | £877/mo | £760/mo |
| £200,000 | £1,112/mo | £1,169/mo | £1,013/mo |
| £250,000 | £1,390/mo | £1,462/mo | £1,267/mo |
| £300,000 | £1,668/mo | £1,754/mo | £1,520/mo |
Top Tips for Using the Mortgage Repayment Calculator
1. Compare Different Terms
A longer term reduces monthly payments but increases total interest. Use the calculator to find the right balance between affordability and total cost.
2. Consider Overpayments
Even small regular overpayments can save thousands in interest. Our overpayment calculator shows exactly how much you could save.
3. Factor in Rate Changes
If you're on a variable or tracker rate, calculate payments at higher rates to ensure you could still afford them if rates rise.
4. Include All Housing Costs
Your mortgage payment isn't your only housing cost. Budget for council tax, utilities, insurance, and maintenance too.
5. Get Pre-Approved First
Before house hunting, get a mortgage in principle to know exactly what you can afford. This strengthens your position with sellers.
Frequently Asked Questions About Mortgage Repayment Calculator
How are mortgage repayments calculated?
Mortgage repayments are calculated using an amortisation formula that considers your loan amount, interest rate, and term. Each payment covers both interest (calculated on the remaining balance) and principal repayment. Early payments are mostly interest, shifting to mostly principal over time.
What's the difference between repayment and interest-only mortgages?
With a repayment mortgage, each monthly payment reduces your debt so you own the property outright at the end. Interest-only payments only cover the interest, leaving the full loan amount still owed. Interest-only mortgages have lower payments but require a separate plan to repay the capital.
Should I choose a shorter or longer mortgage term?
Shorter terms mean higher monthly payments but less total interest paid. Longer terms are more affordable monthly but cost more overall. Many borrowers choose 25 years as a balance, but terms from 10 to 40 years are available. Consider your age at mortgage end and retirement plans.
How much of my income should go on mortgage payments?
Lenders typically allow mortgage payments up to 35-40% of your gross income, but aim for no more than 28-30% of your take-home pay for comfortable living. The lower, the better—it leaves room for savings, emergencies, and lifestyle.
Do mortgage repayments include insurance?
Basic calculations show only the mortgage payment itself. Your actual monthly payment to the lender may include buildings insurance (often required) and payment protection. Council tax and utilities are separate. Always budget for total housing costs.
How can I reduce my monthly mortgage payments?
Options include: extending your mortgage term, remortgaging to a lower rate, making a lump sum payment to reduce the balance, or switching from repayment to interest-only (though this means you still owe the full amount). A larger deposit when buying also means lower payments.
Summary
The mortgage repayment calculator is an essential tool for anyone planning a property purchase or reviewing their current mortgage. By understanding your monthly payments, total interest, and overall cost, you can make informed decisions about loan amounts, terms, and whether overpayments make sense for you. For the best experience with AI-powered mortgage assistance, use our main mortgage calculator.