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Loan calculator

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Where the balance is
YearInterest paidStill owing
Year 1£10,904£196,166
Year 5£52,234£178,543
Year 10£97,693£150,312
Year 15£134,240£113,168
Year 25£168,452£0

Monthly payment£1,228

Total repaid£368,452

Of which interest£168,452

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

Monthly payment on £200,000 over 25 years
Interest rateMonthly paymentTotal 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

  1. 01Enter what you are borrowingType the amount, the annual interest rate and the number of years. All three accept decimals.
  2. 02Read the monthly paymentThe figure pinned at the bottom is the repayment on a straight annuity at one fixed rate.
  3. 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.