How is monthly mortgage payment calculated?

This calculator estimates payment using loan amount, mortgage term, and interest rate, then applies the standard amortization formula for monthly repayments.

What does loan-to-value (LTV) mean?

LTV is the loan amount divided by the property value. Lower LTV generally means lower lender risk and can improve available mortgage rates.

Do overpayments reduce mortgage term?

Usually yes. Overpayments reduce principal faster, which can cut total interest and shorten the mortgage duration, subject to lender rules and limits.

Is this mortgage calculator financial advice?

No. The outputs are estimates for planning and comparison. They do not account for every lender fee, tax implication, or personal advice requirement.

House Deposit & Mortgage Calculator

Estimate deposit, loan size, monthly mortgage payment, and total interest based on your house budget and mortgage assumptions.

Inputs

House value

Currency

London modeEnable London mode

Deposit (%)

Mortgage term (years)

Interest rate (%)

Overpayment calculator

Add a monthly overpayment to see how much time and interest you could save.

Custom overpayment (monthly)

Please check your lender overpayment terms and any early repayment charges.

Results

Deposit amount

£26,990

Mortgage loan amount

£242,910

Estimated monthly payment

£1,379

Loan-to-value (LTV)

90.0%

Total repayment

£496,518

Total interest paid

£253,608

Overpayment per month

£0

New monthly payment

£1,379

Mortgage paid off in

30.0 years

Time saved

0y 0m

Interest saved

£0

Total repayment with overpayment

£496,518

Amortization chart

Remaining balance by year. As principal is paid down, the line trends to zero.

Starting loan

£242,910

Ending balance

£0

Principal repaid

£242,910

Interest paid

£253,608

Yearly amortization table

Track how each year splits between interest and principal.

Year 1

£239,638

Opening balance

£242,910

Principal paid

£3,272

Interest paid

£13,278

Closing balance

£239,638

Year 2

£236,181

Opening balance

£239,638

Principal paid

£3,457

Interest paid

£13,094

Closing balance

£236,181

Year 3

£232,529

Opening balance

£236,181

Principal paid

£3,652

Interest paid

£12,899

Closing balance

£232,529

Year 4

£228,671

Opening balance

£232,529

Principal paid

£3,858

Interest paid

£12,693

Closing balance

£228,671

Year 5

£224,596

Opening balance

£228,671

Principal paid

£4,075

Interest paid

£12,475

Closing balance

£224,596

Year 6

£220,291

Opening balance

£224,596

Principal paid

£4,305

Interest paid

£12,245

Closing balance

£220,291

Year 7

£215,743

Opening balance

£220,291

Principal paid

£4,548

Interest paid

£12,002

Closing balance

£215,743

Year 8

£210,938

Opening balance

£215,743

Principal paid

£4,805

Interest paid

£11,746

Closing balance

£210,938

Year 9

£205,862

Opening balance

£210,938

Principal paid

£5,076

Interest paid

£11,475

Closing balance

£205,862

Year 10

£200,500

Opening balance

£205,862

Principal paid

£5,362

Interest paid

£11,189

Closing balance

£200,500

Year 11

£194,836

Opening balance

£200,500

Principal paid

£5,664

Interest paid

£10,886

Closing balance

£194,836

Year 12

£188,852

Opening balance

£194,836

Principal paid

£5,984

Interest paid

£10,567

Closing balance

£188,852

Year 13

£182,530

Opening balance

£188,852

Principal paid

£6,322

Interest paid

£10,229

Closing balance

£182,530

Year 14

£175,852

Opening balance

£182,530

Principal paid

£6,678

Interest paid

£9,872

Closing balance

£175,852

Year 15

£168,797

Opening balance

£175,852

Principal paid

£7,055

Interest paid

£9,496

Closing balance

£168,797

Year 16

£161,345

Opening balance

£168,797

Principal paid

£7,453

Interest paid

£9,098

Closing balance

£161,345

Year 17

£153,472

Opening balance

£161,345

Principal paid

£7,873

Interest paid

£8,677

Closing balance

£153,472

Year 18

£145,154

Opening balance

£153,472

Principal paid

£8,317

Interest paid

£8,233

Closing balance

£145,154

Year 19

£136,368

Opening balance

£145,154

Principal paid

£8,786

Interest paid

£7,764

Closing balance

£136,368

Year 20

£127,086

Opening balance

£136,368

Principal paid

£9,282

Interest paid

£7,269

Closing balance

£127,086

Year 21

£117,280

Opening balance

£127,086

Principal paid

£9,806

Interest paid

£6,745

Closing balance

£117,280

Year 22

£106,922

Opening balance

£117,280

Principal paid

£10,359

Interest paid

£6,192

Closing balance

£106,922

Year 23

£95,979

Opening balance

£106,922

Principal paid

£10,943

Interest paid

£5,608

Closing balance

£95,979

Year 24

£84,418

Opening balance

£95,979

Principal paid

£11,560

Interest paid

£4,990

Closing balance

£84,418

Year 25

£72,206

Opening balance

£84,418

Principal paid

£12,212

Interest paid

£4,338

Closing balance

£72,206

Year 26

£59,305

Opening balance

£72,206

Principal paid

£12,901

Interest paid

£3,649

Closing balance

£59,305

Year 27

£45,676

Opening balance

£59,305

Principal paid

£13,629

Interest paid

£2,922

Closing balance

£45,676

Year 28

£31,278

Opening balance

£45,676

Principal paid

£14,398

Interest paid

£2,153

Closing balance

£31,278

Year 29

£16,068

Opening balance

£31,278

Principal paid

£15,210

Interest paid

£1,341

Closing balance

£16,068

Year 30

£0

Opening balance

£16,068

Principal paid

£16,068

Interest paid

£483

Closing balance

£0

Year	Opening Balance	Principal Paid	Interest Paid	Cumulative Interest	Closing Balance
1	£242,910	£3,272	£13,278	£13,278	£239,638
2	£239,638	£3,457	£13,094	£26,372	£236,181
3	£236,181	£3,652	£12,899	£39,271	£232,529
4	£232,529	£3,858	£12,693	£51,964	£228,671
5	£228,671	£4,075	£12,475	£64,439	£224,596
6	£224,596	£4,305	£12,245	£76,684	£220,291
7	£220,291	£4,548	£12,002	£88,687	£215,743
8	£215,743	£4,805	£11,746	£100,433	£210,938
9	£210,938	£5,076	£11,475	£111,908	£205,862
10	£205,862	£5,362	£11,189	£123,096	£200,500
11	£200,500	£5,664	£10,886	£133,982	£194,836
12	£194,836	£5,984	£10,567	£144,549	£188,852
13	£188,852	£6,322	£10,229	£154,778	£182,530
14	£182,530	£6,678	£9,872	£164,651	£175,852
15	£175,852	£7,055	£9,496	£174,146	£168,797
16	£168,797	£7,453	£9,098	£183,244	£161,345
17	£161,345	£7,873	£8,677	£191,922	£153,472
18	£153,472	£8,317	£8,233	£200,155	£145,154
19	£145,154	£8,786	£7,764	£207,919	£136,368
20	£136,368	£9,282	£7,269	£215,188	£127,086
21	£127,086	£9,806	£6,745	£221,933	£117,280
22	£117,280	£10,359	£6,192	£228,125	£106,922
23	£106,922	£10,943	£5,608	£233,732	£95,979
24	£95,979	£11,560	£4,990	£238,723	£84,418
25	£84,418	£12,212	£4,338	£243,061	£72,206
26	£72,206	£12,901	£3,649	£246,710	£59,305
27	£59,305	£13,629	£2,922	£249,632	£45,676
28	£45,676	£14,398	£2,153	£251,784	£31,278
29	£31,278	£15,210	£1,341	£253,125	£16,068
30	£16,068	£16,068	£483	£253,608	£0

What a mortgage is

A mortgage is a long-term loan used to buy property. You usually pay an upfront deposit, borrow the rest, and repay the lender in monthly installments made up of both interest and principal.

Amortization is the process of reducing that loan balance over time. In the early years, more of each payment often goes to interest; later, more of each payment goes to principal, so the balance falls faster.

Etymology check: The word mortgage comes from Old French mort gage, often translated as "dead pledge." The word amortize comes via French amortir, meaning to deaden or extinguish (as in extinguishing debt). So the "death" idea is historically accurate, but it does not literally mean "until death."