How the rate is worked out
The calculator finds the monthly rate at which your payments exactly repay the money you actually receive, then turns it into an annual rate including the effect of compounding: APR = (1 + monthly rate)^12 − 1. Fees paid upfront reduce the money you receive, so they push the APR up.
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.
Inputs for the calculator home loan rate
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.