THE NUMBERS, EXPLAINED
How to use this calculator.
Interest-only payments do not reduce principal. A separate repayment of the full principal is required.
Start with your inputs
Enter principal (£), annual rate (%), years. Keep amounts in the units shown on each field. The example is a starting point, not a recommended value.
| Input | Example value |
|---|---|
| Principal (£) | 10000 |
| Annual rate (%) | 6 |
| Years | 2 |
A worked example
With the example inputs above, monthly interest (£) is 50. Change the inputs to explore your own scenario.
Putting the example numbers into the formula
Monthly interest (£)
(10000) × (6) ÷ 1200 = 50
Total interest (£)
(10000) × (6) ÷ 100 × (2) = 1,200
Principal still owed (£)
(10000) = 10,000
| Result | Example answer |
|---|---|
| Monthly interest (£) | 50 |
| Total interest (£) | 1,200 |
| Principal still owed (£) | 10,000 |
How this is calculated
Monthly interest (£)
a × b ÷ 1200
Total interest (£)
a × b ÷ 100 × c
Principal still owed (£)
a
Symbols and units
- a
- Principal (£)
- b
- Annual rate (%)
- c
- Years
Use the units shown. A list keeps the order in which you enter its values. The symbol ^ means “raised to the power of”.
Assumptions and limits
Interest-only payments do not reduce principal. A separate repayment of the full principal is required.
Calculations use the values you enter. Blank or invalid inputs show an error instead of silently substituting zero. Results are displayed to useful precision; calculations retain the underlying numeric precision.
Questions about this tool
What does the result tell me?
Monthly interest (£); Total interest (£); Principal still owed (£). The result applies to the method and inputs described above. Check the units and assumptions before using it in a decision.
Why might another calculator differ?
Differences in units, rounding, timing or model definitions can produce different answers. Compare the input definitions and the method, rather than only the final number. For this tool: Interest-only payments do not reduce principal. A separate repayment of the full principal is required.
Are my inputs stored or sent to AI?
Calculations on this page happen in your browser. The separate AI question finder sends its submitted conversation to OpenAI; these calculator fields are not sent. Favourites and recent tool names are stored locally. A shared link contains the inputs you choose to include.
Review status
Software example and browser checks are recorded in our quality report. No external expert review is claimed. Created with coding assistance; calculations run as ordinary browser code.
Read the quality report →