Loan calculator
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The short answer
Borrowing £200,000 over 25 years at 5.5% costs £1,228 a month. Total repaid £368,452, of which £168,452 is interest — 84 per cent of what you borrowed.
The amortisation runs in the page. Your salary, your deposit and what you can afford are not figures anyone else needs to see, and here nobody does.
The formula
monthly = P × r ÷ (1 − (1 + r)⁻ⁿ), where P is the amount borrowed, r the monthly interest rate and n the number of payments
Worked examples
- £200,000 at 5.5% over 25 years
- £1,228 a month
- £20,000 at 9% over 5 years
- £415 a month
- £400,000 at 4% over 30 years
- £1,910 a month
Reference table
| Interest rate | Monthly payment | Total interest |
|---|---|---|
| 3% | £948 | £84,527 |
| 4% | £1,056 | £116,702 |
| 5% | £1,169 | £150,754 |
| 6% | £1,289 | £186,581 |
| 7% | £1,414 | £224,068 |
| 8% | £1,544 | £263,090 |
How to use it
- 01Enter what you are borrowingType the amount, the annual interest rate and the number of years. All three accept decimals.
- 02Read the monthly paymentThe figure pinned at the bottom is the repayment on a straight annuity at one fixed rate.
- 03Check where the money goesThe table shows interest paid and capital still owing at years one, five, ten, fifteen and the end of the term.
Also searched for
Searches that land here include loan calculator, mortgage repayment calculator, amortisation schedule, monthly payment calculator and total interest paid.
About loan repayments
Why the interest looks front-loaded
Every payment is split between interest and capital, and the interest is charged on what is still owed. Early on almost all of it is owed, so almost all of the payment is interest. The table above shows the crossover: on a twenty-five-year loan you are usually past the halfway point in time before you are past it in capital.
Questions people ask
Why does my lender quote a different monthly figure?
Lenders add arrangement fees, insurance and sometimes a different compounding convention, and many quote a rate that changes after an introductory period. This calculates a straight repayment on one fixed rate. Use it to compare offers against each other, not to predict a statement to the penny.