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Mortgage Amortisation Calculator

Mortgage Amortisation Calculator

Understanding how your mortgage repayments are distributed between principal and interest is crucial for effective financial planning. Our Mortgage Amortisation Calculator helps you visualise your repayment schedule, giving you clarity on monthly and annual costs.
Mortgage Amortization Calculator

Mortgage Amortization Calculator

See exactly how your mortgage balance decreases over time with detailed payment schedules

Mortgage Details

£
£50k £500k £1M
%
0.5% 8% 15%
Years
Months

Amortization Information

This calculator shows how your mortgage balance decreases over time. Early payments are mostly interest, while later payments pay down more principal.

Payment Summary

Monthly Payment
£1,389
Principal and interest payment
Total Interest
£166,700
Interest paid over mortgage term
Total Paid
£416,700
Total amount paid over term
Interest Percentage
40.0%
Percentage of payments that are interest

Amortization Schedule

Showing monthly payments
Payment # Date Payment Principal Interest Balance
Amortization Summary
Your £250,000 mortgage will cost £1,389 per month over 25 years. You'll pay £166,700 in total interest, making your total cost £416,700. In the first year, 74% of payments go to interest, while in the final year, only 4% goes to interest.

Why Use a Mortgage Amortisation Calculator?

A mortgage amortisation schedule shows how each payment is split between reducing your loan balance (principal) and paying interest. It’s a valuable tool for:

Understanding Repayment Progress

See how much of each payment reduces your loan balance.

Planning Extra Payments

Identify how additional payments could save interest and shorten your loan term.

Budgeting

Forecast your future financial commitments.

How Does the Mortgage Repayment Calculator Work?

01

Our calculator provides accurate estimates based on

  • Loan Amount: The total amount you intend to borrow.
  • Interest Rate: The annual interest rate offered by your lender.
  • Loan Term: The duration of your mortgage in years (e.g., 15, 20, or 25 years).
02

After entering these details, the calculator displays

  • Monthly Payment: Includes both interest and principal repayment.
  • Monthly Payment: Covers only the interest, with the loan balance remaining unchanged.

Example Scenario

Curb your spending

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Lower priced home

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Reduce open accounts

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Longer amortization

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Benefits of Using an Amortisation Schedule

Optimise Your Loan

Extra Payments: Plan additional payments to reduce your loan term and save on interest.

Stay Financially Informed

Track how your loan balance decreases over time, ensuring you stay on top of your finances.

Evaluate Refinancing Options

Use the schedule to determine whether refinancing your mortgage could save you money.

How Does It Work?

Our calculator provides a detailed breakdown of your mortgage repayments

Enter Loan Details

Provide the loan amount, interest rate, loan term, and start date.

View Monthly and Annual Summaries

First 24 Months: Payments displayed month-by-month. Subsequent Years: Consolidated annual summaries for easier interpretation.

Analyse Your Repayments

Understand how much goes toward interest and principal each year, and how your balance reduces over time.

0208 143 7779

Frequently Asked Questions

Ans: Mortgage amortisation refers to the process of gradually paying off a loan through scheduled repayments of principal and interest.
Ans: The monthly payment is based on the loan amount, interest rate, and loan term, using a standard amortisation formula.
Ans: Yes. Making extra payments reduces your loan balance faster, saving interest and shortening the term.
Ans: In the early years of your loan, interest makes up a larger portion of each payment. As the loan balance decreases, more of each payment goes toward the principal.
Ans: This version of the calculator does not include additional payments, but future iterations may include this feature.
Ans: Displaying annual summaries simplifies the schedule, making it easier to interpret long-term trends without losing key details.