1. What is the Mortgage Interest Calculator?

This calculator helps you determine the total interest you'll pay over the life of your mortgage, following Martin Lewis's advice on understanding the true cost of borrowing.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( EMI \) — Equated Monthly Installment (GBP)
• \( N \) — Loan tenure in months
• \( P \) — Principal loan amount (GBP)

Explanation: The formula calculates the total amount paid over the loan term and subtracts the principal to reveal the interest cost.

3. Importance of Calculating Total Interest

Details: Understanding total interest helps borrowers compare mortgage offers, assess affordability, and make informed decisions about loan terms.

4. Using the Calculator

Tips: Enter your monthly payment amount, loan term in months, and original loan amount. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why is this calculation important?
A: It reveals the true cost of borrowing, helping you understand how much extra you're paying beyond the house price.

Q2: Does this account for interest rate changes?
A: No, this assumes fixed monthly payments. For variable rates, you'd need to calculate each period separately.

Q3: How can I reduce total interest paid?
A: Making overpayments, choosing shorter terms, or securing lower interest rates all reduce total interest.

Q4: Is this calculation accurate for all mortgage types?
A: It works best for standard repayment mortgages. Interest-only mortgages require different calculations.

Q5: Where can I find my EMI amount?
A: Your lender provides this in your mortgage agreement or you can use online mortgage calculators to estimate it.