Finance
Mortgage Calculator: EMI, Total Cost & Amortization Explained
How to calculate your monthly mortgage payment, understand amortization, and work out the total cost of a home loan.
How mortgage payments are calculated
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1) — where P = loan amount, r = monthly interest rate, n = total payments.
Use ToolCrix Mortgage Calculator for an instant breakdown.
What is amortization?
An amortization table shows how each payment splits between interest and principal. Early on, most goes to interest. As the loan matures, more goes to principal.
How to reduce total mortgage cost
- Larger deposit — reduces loan amount and often secures a lower rate.
- Shorter term — 15-year costs far less in total interest than 25-year, though monthly payments are higher.
- Overpayments — an extra £100–200/month can knock years off the mortgage.
- Remortgage at renewal — never let your fixed rate expire onto the standard variable rate without shopping around.
Example: £250,000 at 5.5% over 25 years
- Monthly payment: £1,529
- Total repaid: £458,700
- Switching to 20 years: saves £46,380 in interest.