Tools · Property
Loan & Mortgage Calculator
Estimate monthly repayments, total interest cost, and an amortisation summary for international property loans or business financing — in GBP, USD, or EUR.
Loan Details
Monthly Payment
£1,842
Capital & Interest — 25 year term at 5.5%
Amortisation Summary
| Year | Opening balance | Interest | Capital | Closing balance |
|---|---|---|---|---|
| Year 1 | £294,741 | £16,060 | £6,047 | £288,693 |
| Year 5 | £268,427 | £14,575 | £7,532 | £260,895 |
| Year 13 | £194,836 | £10,424 | £11,683 | £183,154 |
| Year 25 | £1,834 | £8 | £22,099 | £0 |
Disclaimer: For illustrative purposes only. Actual mortgage terms depend on lender, jurisdiction, LTV, credit profile, and other factors. Seek independent mortgage advice for a specific transaction.
What this calculator does and who it’s for
The Loan & Mortgage Calculator turns a headline loan into the numbers that actually matter for budgeting: the monthly payment, the total you will repay, the total interest cost, and a year-by-year picture of how the balance falls. It is built for anyone weighing up borrowing against property or business assets across borders — an expat buying a home or buy-to-let, an internationally mobile professional financing an overseas apartment, or an investor sizing the cost of leverage before committing. You can run the figures in pounds, dollars or euros, switch between a repayment and an interest-only structure, and immediately see how each choice changes the cost. It sits alongside the rest of our calculators and tools and complements the guidance in our international property hub.
How it works — the method behind the numbers
For a Capital & Interest (repayment) loan the tool applies the standard annuity formula. It converts your annual interest rate into a monthly rate, spreads the loan across the number of monthly payments in the term, and solves for the level payment that clears the balance exactly at the end. Every payment covers that month’s interest first, and whatever is left reduces the capital. Because the balance shrinks over time, the interest portion falls and the capital portion grows — which is why a repayment loan feels front-loaded with interest in its early years.
For an Interest Only loan the calculation is simpler: the monthly payment is just the loan balance multiplied by the monthly interest rate. The capital never reduces, so the payment stays flat and the full loan amount is still outstanding at the end of the term, waiting to be repaid from a sale, investment proceeds or a remortgage. The results panel reports your monthly payment, the total repaid over the term, the total interest, and the interest expressed as a percentage of the loan. Beneath that, the amortisation summary samples key years — the first year, year five, the mid-point and the final year — and for each shows the opening balance, the interest paid, the capital repaid and the closing balance, so you can watch the loan wind down (or, on interest-only, stay put).
A worked example
Take a £300,000 loan at 5.5% over 25 years, the tool’s default. On a Capital & Interest basis the monthly payment lands in the region of £1,840, and over the full 25 years you repay well over £550,000 — meaning the interest alone is comparable to the original loan. Switch the same loan to Interest Only and the monthly cost drops sharply, because you are paying interest and nothing else, but the £300,000 capital is still owed in full at the end and must be repaid separately. Reading the two side by side is the point of the tool: the lower monthly figure on interest-only is not a saving so much as a deferral, and the total-interest line makes the long-run cost of that deferral visible. Nudging the interest rate up or down by even half a percentage point, or shortening the term, shifts these figures noticeably — a quick way to test how sensitive your budget is to rate rises.
Key assumptions and limitations
The figures are a clean illustration, not a lender quote. The calculator assumes a single fixed rate for the entire term; in reality most mortgages move onto a variable or revert rate after an initial fixed period, so payments can change. It works in one currency at a time and does not model exchange-rate movements — important if you will service a foreign-currency mortgage from income in another currency. And it covers the loan itself only: it excludes arrangement and product fees, valuation and legal costs, stamp duty or its local equivalents, early repayment charges, buildings insurance and any tax treatment of the interest. For an overseas purchase, the currency of the mortgage is often the biggest hidden risk — if your income currency weakens against the loan currency, the real cost of every repayment rises. You can model the cost of moving money between currencies with our FX transfer calculator, and our guide to currency hedging for property buyers explains how buyers manage that exposure.
How to read your result and what to do next
Start with the monthly payment to check affordability against your income, then look at the total interest to understand the true lifetime cost of the borrowing — that is the number that separates a cheap loan from an expensive one. Use the amortisation summary to see how much of the debt you will actually have cleared at points that matter to you, such as when you might sell or remortgage. If you are borrowing as a non-resident or expat, remember that lenders typically apply lower loan-to-value limits and slightly higher pricing than residents receive; our international mortgages guide walks through how that market works in practice. Finally, set the mortgage in the context of your wider finances — a large secured liability changes your balance sheet, so it is worth checking the effect with our net worth calculator and factoring in the eventual capital gains position if you plan to sell. Once the numbers stack up on paper, the sensible next step is advice tailored to the specific lender, jurisdiction and structure you have in mind.
Important — the calculator assumes a single fixed interest rate held for the whole term and covers only the loan itself — it excludes arrangement fees, valuation and legal costs, stamp duty, early repayment charges, insurance and any exchange-rate movement on a foreign-currency mortgage, so real lender terms and total costs will differ.
This tool is a general illustration based on the figures you enter. It does not constitute financial, investment, tax or legal advice, and the results are estimates rather than guarantees. Global Investments is not authorised or regulated by the Financial Conduct Authority. Where the amounts involved are material, take advice from a suitably qualified professional in each relevant jurisdiction before acting.
Related tools & guides
- International property hub — buying, financing and letting across the UK and key overseas markets
- International mortgages guide — how expat and non-resident lending actually works
- Currency hedging for property buyers — managing FX risk on a foreign-currency mortgage
- FX transfer calculator — estimate the real cost of moving money across borders
- Net worth calculator — see how a mortgage sits within your overall balance sheet
- All calculators & tools — the full Global Investments tool library
Loan & mortgage calculator — common questions
6 questions
What formula does this loan calculator use?
For a Capital & Interest (repayment) loan the tool uses the standard annuity formula, M = P·r·(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate (the annual rate divided by 12) and n is the number of monthly payments (the term in years multiplied by 12). That produces a level monthly payment that clears the balance over the term. For an Interest Only loan the monthly figure is simply the balance multiplied by the monthly rate, so the payment covers interest alone and the capital is untouched. Both calculations assume a fixed rate held for the whole term, which is a simplification the results section makes clear.
Link to this questionWhat is the difference between a capital & interest mortgage and an interest-only mortgage?
With a Capital & Interest (repayment) mortgage each monthly payment covers the interest accruing that month and also chips away at the outstanding balance, so by the end of the term the loan is fully repaid. With an interest-only mortgage the monthly payment covers only the interest — the capital stays at its original level throughout and must be repaid in full at the end, typically from the sale of the property, investment proceeds or a remortgage. Interest-only carries a lower monthly cost but a much higher total interest bill, because you never reduce the balance the interest is charged on. Switching between the two options in the tool shows exactly how large that difference is for your figures.
Link to this questionHow is the amortisation summary calculated?
The summary steps through the loan month by month and reports on a handful of key years — typically year 1, year 5, the mid-point of the term and the final year. For each of those years it shows the opening balance, the interest paid that year, the capital repaid that year and the closing balance. On a repayment loan you can see the balance falling and the split shifting: early on most of each payment is interest, and over time a growing share goes to capital. On an interest-only loan the balance stays flat because no capital is repaid, so every year shows the same opening and closing figure.
Link to this questionCan expats and non-residents get a mortgage on property abroad?
In most established markets, yes — non-resident and expat mortgages are widely available, though usually on stricter terms than residents receive. Lenders commonly cap the loan-to-value at a lower level for overseas borrowers, ask for a larger deposit, and price the rate a little higher to reflect the added risk. Requirements vary by country and can include a local bank account, income evidenced in a recognised currency and a local solicitor or notary. Because this calculator only takes a loan amount, rate and term, it models the repayment mechanics rather than whether a particular lender will approve you — treat it as a planning tool and confirm real terms with a mortgage specialist for your target market.
Link to this questionWhy does the currency of my mortgage matter?
Because a mortgage is a long-term commitment in a single currency. If you borrow in a currency that differs from the one your income or rental receipts are paid in, you take on foreign exchange risk: when your income currency weakens against the loan currency, the real cost of every repayment rises. For example, a euro mortgage serviced from sterling income becomes more expensive in pound terms if the pound falls against the euro. The calculator lets you run the numbers in GBP, USD or EUR, but it assumes a single currency throughout and does not model exchange-rate movements. Matching the loan currency to your income, or planning a hedging approach, is worth discussing before you commit.
Link to this questionDoes the calculator include fees, stamp duty and other purchase costs?
No. It isolates the loan mechanics — monthly payment, total interest and the amortisation path — and deliberately leaves out everything else. It does not include arrangement or product fees, valuation and legal costs, stamp duty or its overseas equivalents, early repayment charges, insurance, or the effect of a variable rate changing during the term. Those items can add materially to the true cost of buying and holding a property, so use the figures here as the financing backbone of your budget and layer the transaction and running costs on top before drawing conclusions.
Link to this questionDiscuss your international mortgage options
Our advisers can connect you with international lenders and help you understand the financing options available in your target market.