Enter your loan details and click Calculate to see your repayment plan.
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About This Calculator
How Loan and Mortgage Calculations Work
A loan is repaid through regular monthly payments covering both interest and capital. Early payments are mostly interest; later payments are mostly capital.
Monthly Payment
Your monthly payment is fixed for the life of a standard repayment mortgage, calculated to pay off both interest and capital over the agreed term.
Total Interest Cost
Over 25 years, the total interest on a 250,000 mortgage at 4.5% exceeds 160,000. Knowing this upfront helps you make informed decisions.
Term vs Rate
A shorter term means higher monthly payments but far less total interest. A lower rate saves significantly more than shortening the term.
Worked Example
A 200,000 mortgage at 3.5% over 25 years gives a monthly payment of 1,001. Total repayment is 300,300 of which 100,300 is interest. In year one approximately 583 of each payment is interest and 418 is capital. By year 20 the split has reversed: only 175 is interest and 826 is capital repayment.
Common Questions
What is the difference between a mortgage and a personal loan?
Mortgages are secured against property with longer terms and lower rates. Personal loans are unsecured, shorter term and carry higher rates.
Does this include fees and charges?
No. Results show the pure repayment cost. Real mortgages may include arrangement fees and insurance not reflected here.
What is an amortisation schedule?
An amortisation schedule shows how each monthly payment splits between interest and capital repayment year by year.
Should I choose the shortest term I can afford?
Not necessarily. A shorter term reduces total interest paid but increases monthly payments and reduces financial flexibility. A practical approach is to take the longest term available to keep payments manageable then overpay voluntarily when your finances allow. This gives you the interest savings of a short term with the flexibility of a long one.
How does a fixed rate differ from a variable rate?
A fixed rate stays the same for a set period giving payment certainty regardless of market rates. A variable or tracker rate moves with a reference rate such as the ECB base rate or EURIBOR meaning your payments can go up or down. This calculator models a fixed rate scenario.