Mortgage Calculator
Calculate monthly mortgage payments and total cost
Results are estimates for informational purposes only and do not constitute financial, legal, or medical advice.
Use our free mortgage calculator to estimate your monthly payment based on the loan amount, interest rate, and loan term. Enter your figures to instantly see your monthly payment, total repayment, and total interest paid over the life of the loan — no sign-up required.
All payments are calculated using the annuity (equal-payment) method — the most common repayment structure in the UK, US, EU, and most other countries. Each payment covers interest on the outstanding balance plus a portion of principal, so the interest share decreases and the principal share increases over time. This calculator does not include additional costs such as property insurance, mortgage insurance (PMI/MIG), or origination fees.
Frequently Asked Questions
How is the monthly mortgage payment calculated?
The monthly payment uses the annuity formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ–1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments.
What does the total interest figure mean?
Total interest is the difference between the total amount you repay and the original loan amount. For example, a £200,000 mortgage at 5% over 25 years results in roughly £175,000 in total interest — meaning you repay nearly double the original loan.
Does the calculator include insurance or fees?
No. This calculator shows only principal and interest. Additional costs — such as homeowner's insurance, property tax, mortgage insurance (PMI/MIG), and lender fees — are not included and should be budgeted separately.
What is the difference between annuity and differentiated payments?
Annuity payments are equal throughout the term — easier to budget. Differentiated payments are higher at first and decrease over time, resulting in less total interest. Most banks in the UK, US, France, and Lithuania offer annuity. Russia and Ukraine often offer both.
How does the interest rate affect monthly payments?
Even a 1% rate difference has a significant effect. On a £200,000 / 25-year mortgage: at 4% the payment is ~£1,056/month; at 5% it's ~£1,169; at 6% it's ~£1,289. That's a £233/month difference between 4% and 6%.
Should I choose a shorter or longer loan term?
A shorter term means higher monthly payments but much less total interest. A longer term reduces the monthly burden but costs significantly more overall. For example, a £200,000 loan at 5%: over 15 years the monthly payment is ~£1,582 and total interest ~£84,800; over 30 years the payment drops to ~£1,074 but total interest rises to ~£186,500.
What is LTV (loan-to-value)?
LTV is the loan amount as a percentage of the property value. For example, buying a £250,000 home with a £200,000 mortgage gives an LTV of 80%. Lower LTV means less risk for the lender, which typically results in better (lower) interest rates. Most lenders prefer LTV below 80%.
What happens if I make overpayments?
Overpayments reduce your outstanding balance faster, which means you pay less total interest and can pay off the mortgage earlier. Many mortgages allow overpayments of up to 10% of the outstanding balance per year without early repayment charges. Check your mortgage agreement for terms.
What is a good mortgage interest rate?
A "good" rate depends on the country, market conditions, and your credit profile. In 2024–2025: UK fixed rates are around 4–5%, US 30-year fixed around 6–7%, France around 3.5–4%, Ukraine around 10–14%. The best way to compare is always by APR (Annual Percentage Rate), which includes all fees.
Can I use this calculator for any currency?
Yes. The annuity formula works identically for any currency — just enter your amount in the currency you need. The result will be in the same currency.