BEHIND THE NUMBERS
How this calculation works
Worked example
£1,200 divided by 12 is £100 a month. There is no interest; adding the separately paid £30 fee gives £1,230 total outgoings.
Example result: £100.00
Read the payment and the total together
A longer term can reduce the monthly commitment while increasing interest paid overall. The schedule separates interest from capital so you can see why the balance often falls slowly at first.
Which rate should I enter?
For a repayment mortgage use the borrowing rate, rather than an APRC that includes fees and later rates. For a loan, confirm whether the annual figure is nominal or effective. If you only have an APR with fees, this is a planning estimate rather than a reconstruction of the lender’s quote.
Assumptions and rounding
- Equal monthly payments in arrears; fixed interest throughout the entered term.
- Upfront fees do not change the financed balance. Full precision internally; display to pennies.
Questions about this calculator
Can I use this for a mortgage?
Yes, for a fixed-rate capital repayment scenario. Enter the outstanding balance and remaining months to model an existing mortgage.
Why does my lender’s payment differ?
Daily interest, payment dates, financed fees, a rate convention or penny rounding can change the quote. Match those terms before comparing.