How is the monthly mortgage payment worked out?

A repayment (capital-and-interest) mortgage uses the standard amortization formula: the monthly payment is fixed so the loan clears exactly at the end of the term. It depends on three things - the amount borrowed, the interest rate, and the term in years. Lower rate or longer term means a smaller monthly payment but more total interest.

Does this include a real interest rate?

No - you enter the rate yourself, so the result is illustrative. Real mortgage APRs also fold in arrangement fees and the lender's compounding convention, which this simple calculator does not model. Use it to compare scenarios, not as a lending quote.

What is the difference between repayment and interest-only?

This calculator models a repayment mortgage, where each payment clears some capital plus the interest, so the balance reaches zero at the end of the term. An interest-only mortgage pays just the interest and leaves the full capital outstanding, so its monthly cost is lower but nothing is repaid.

Mortgage Repayment Calculator 2026

Enter the amount you are borrowing, the interest rate and the term to see your monthly repayment and the total interest you will pay over the life of a capital-and-interest (repayment) mortgage. You set the rate, so the result is illustrative. See also: mortgage overpayment calculator.

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Frequently asked questions

How is the monthly mortgage payment worked out?: A repayment (capital-and-interest) mortgage uses the standard amortization formula: the monthly payment is fixed so the loan clears exactly at the end of the term. It depends on three things - the amount borrowed, the interest rate, and the term in years. Lower rate or longer term means a smaller monthly payment but more total interest.
Does this include a real interest rate?: No - you enter the rate yourself, so the result is illustrative. Real mortgage APRs also fold in arrangement fees and the lender's compounding convention, which this simple calculator does not model. Use it to compare scenarios, not as a lending quote.
What is the difference between repayment and interest-only?: This calculator models a repayment mortgage, where each payment clears some capital plus the interest, so the balance reaches zero at the end of the term. An interest-only mortgage pays just the interest and leaves the full capital outstanding, so its monthly cost is lower but nothing is repaid.

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