Basic Mortgage Calculator

Use this calculator to estimate your monthly mortgage payments and see how your mortgage debt changes over time. Enter your mortgage details below to get started.

£

years

1 to 40 years

%

Mortgage type

Fees to take out the mortgage

How to use

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About This Calculator

The Basic Mortgage Calculator helps you understand how much your mortgage will cost you each month and over the full term. It allows you to see how your mortgage debt will decrease over time and the total amount of interest you'll pay.

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How to Use the Calculator

Step 1

Enter the Mortgage Debt

Enter the total amount you're borrowing for your mortgage in pounds (£).

Step 2

Enter the Mortgage Term

Enter the length of your mortgage in years. This is typically between 5 and 40 years.

Step 3

Select the Mortgage Type

Choose between a repayment mortgage (where you pay off both the capital and interest) or an interest-only mortgage (where you only pay the interest and the capital is paid off at the end of the term).

Step 4

Enter the Interest Rate

Enter the annual interest rate for your mortgage as a percentage (%).

Step 5

Add Fees (Optional)

If you have any fees associated with taking out the mortgage, you can include them in the calculation. Toggle the switch to add fees and enter the amount.

Step 6

Calculate and View Results

Click the "Calculate" button to see your mortgage details. The results will show:

  • Monthly Payment: How much you'll pay each month
  • Total Repayment: The total amount you'll pay over the full term
  • Debt Over Time: A chart showing how your mortgage debt decreases over time
  • Remaining Debt Table: A year-by-year breakdown of your remaining mortgage debt

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Understanding the Results

Monthly Payment

This is the amount you'll need to pay each month to repay your mortgage within the specified term. For a repayment mortgage, this includes both the capital repayment and interest. For an interest-only mortgage, this is just the interest payment.

Total Repayment

This is the total amount you'll pay over the full term of your mortgage, including the original loan amount, all interest payments, and any fees you've added to the mortgage.

Debt Over Time Chart

This chart shows how your mortgage debt decreases over the term of your mortgage. For a repayment mortgage, you'll see the debt gradually decrease to zero. For an interest-only mortgage, the debt remains constant until the end of the term.

Remaining Debt Table

This table provides a year-by-year breakdown of your remaining mortgage debt. It helps you understand how much of your mortgage you'll have paid off at different points in time.

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Mortgage Types Explained

Repayment Mortgage

With a repayment mortgage, your monthly payments cover both the interest and a portion of the capital (the amount you borrowed). By the end of the mortgage term, you will have paid off the entire loan and will own your property outright.

Advantages: You'll be completely mortgage-free at the end of the term. Each payment reduces your debt.

Disadvantages: Monthly payments are higher than with an interest-only mortgage.

Interest-Only Mortgage

With an interest-only mortgage, your monthly payments only cover the interest on the loan. The capital amount remains the same throughout the term, and you'll need to pay it off in full at the end of the mortgage term.

Advantages: Lower monthly payments compared to a repayment mortgage.

Disadvantages: You'll need to have a separate plan to pay off the capital at the end of the term. You won't reduce your debt unless you make additional payments.

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Calculation Assumptions

In order to create these results, we have made the following assumptions:

  • Monthly Interest: Interest is charged monthly.
  • Fixed Interest Rate: The interest rate stays the same over the entire term.
  • Interest-Only Payments: If you selected 'Interest only', we assume your standard monthly payment doesn't decrease even if you pay off some of the balance.
  • Rounded Payments: Monthly payments are rounded down to the nearest pound for simplicity.

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