Enter your loan amount — the total amount you’re borrowing. 2. Enter your interest rate — your lender’s annual rate. 3. Enter your loan term — typically 25 or 30 years. Your estimated monthly payment updates instantly as you adjust any value.

Buying a home is one of the biggest financial decisions most people make — and knowing your monthly payment before you commit is essential. This free calculator gives you an instant, accurate estimate based on your loan amount, interest rate, and term.

Worked example

Let’s say you’re borrowing £250,000 at a 4.5% interest rate over 25 years. Plugging these numbers in gives a monthly payment of approximately £1,389 — this covers both the interest and a portion of the loan balance (the principal) each month.

If you shortened the term to 20 years instead, your monthly payment would rise, but you’d pay significantly less interest overall across the life of the loan. Try adjusting the term above to see this trade-off for yourself.

What affects your mortgage payment

• Loan amount: a larger loan means a larger monthly payment, all else being equal.
• Interest rate: even a small difference in rate can change your payment by a meaningful amount over a 25-30 year term.
• Loan term: a longer term lowers your monthly payment but increases the total interest paid over time. A shorter term does the opposite.

What this calculator doesn’t include

This tool estimates your principal and interest payment only. Your actual monthly housing cost may also include property taxes, home insurance, and if applicable, mortgage insurance — so your real payment could be somewhat higher than the number shown here.

Frequently asked questions

Does a bigger deposit lower my monthly payment? Yes — a larger deposit reduces your loan amount, which directly lowers your monthly payment. Try entering a smaller loan amount above to see the effect.

Is a fixed or variable rate better? A fixed rate keeps your payment the same for the life of the loan, while a variable rate can rise or fall over time. This calculator assumes a fixed rate for simplicity.

Can I pay off my mortgage faster? Yes — making extra payments toward your principal can shorten your loan term and reduce total interest paid. This calculator shows your standard payment; extra payments would need to be calculated separately.

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This calculator provides an estimate for informational purposes only and does not constitute financial advice. Consult a mortgage advisor or lender for a formal quote based on your full financial situation.