How the rate is worked out
The calculator finds the monthly rate at which your payments exactly repay the loan after fees, then shows it as a yearly rate and as an APR.
Mortgage lenders quote an APRC, which assumes you move onto the lender's standard variable rate when your deal ends. This calculator assumes one rate throughout, so it shows the rate for the payments you enter.
Worked example
A £250,000 mortgage at £1,389.58 a month over 25 years has an interest rate of 4.5% and an APR of 4.6%. A £999 arrangement fee barely changes the APR, because it's spread over 25 years, but it matters more if you remortgage after a short deal.
Comparing mortgage deals
For a fixed-rate deal, compare the total cost over the deal period, including fees, rather than the headline rate alone.
What this calculator assumes
It works backwards from your payment, the amount borrowed, any upfront fees and the term, assuming equal monthly payments on one rate. If your payment is for an initial fixed deal only, the result describes that payment over the full term, not a real deal.
Use it to check a quoted rate against a payment, and to see how fees move the APR, not to replace the APRC in your mortgage illustration.
Inputs for the home loan rate calculator
Amount borrowed
The amount of the loan.
Upfront fees
Any arrangement or other fees you pay at the start, or that are taken from the loan. Enter 0 if there are none.
Monthly payment
Your regular monthly repayment from the quote or agreement.
Term
How many years the payments last.
CALCULATOR QUESTIONS
Home loan rate calculator questions
What's the APRC on a mortgage?
The annual percentage rate of charge. It assumes you stay on the lender's standard rate after the initial deal, for the whole term.
Do mortgage fees matter?
Over a short deal, yes. Compare total cost over the deal period, including fees.
What's the difference between APR and the interest rate?
The interest rate is what's charged on the balance. The APR also includes compulsory fees and the effect of compounding, so it's the better figure for comparing deals.
How do I find my mortgage rate from my payment?
Enter the loan, fees, payment and term above.