Loan and mortgage repayment calculator
United Kingdom · 2026/27 tax year
Also for Canada
Also for United StatesFind out what a loan or repayment mortgage will cost you each month, how much interest you will pay in total, and how quickly the balance comes down.
Year-by-year repayment schedule
| Year | Capital repaid | Interest paid | Balance left |
|---|
How loan repayments are calculated
Most loans and repayment mortgages are paid back in equal monthly instalments. Each payment covers that month's interest, and the rest reduces the amount you owe. Early on, most of each payment is interest. As the balance falls, more of each payment goes towards the loan itself.
The monthly payment is worked out with the standard formula payment = P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r is the monthly interest rate and n is the number of monthly payments.
Example: a £200,000 mortgage
At 4.5% over 25 years, the monthly payment is about £1,112. Over the full term you would repay about £333,500, of which roughly £133,500 is interest. Over 30 years, the payment drops to about £1,013 a month, but the total interest rises to about £164,800.
Frequently asked questions
Does this work for interest-only mortgages?
No. On an interest-only mortgage you only pay the interest each month (amount × rate ÷ 12) and repay the whole loan at the end. This calculator is for repayment loans.
Is the rate I enter the APR?
Enter the interest rate. APR also includes fees, so using it gives a slightly higher estimate that is closer to the full cost of the loan.
How can I pay less interest?
Borrowing less, choosing a shorter term, finding a lower rate or making overpayments all reduce the total interest. Check with your lender whether overpayments carry a charge.
Estimates for guidance only. Your lender's figures may differ slightly because of fees, payment dates and how interest is charged.
Last checked and updated: October 2026