Mortgage Overpayment Calculator
How much interest and time you save by overpaying.
Your details
Interest you could save
£29,284
Mortgage paid off 4 yrs 10 mths sooner
- Normal monthly payment
- £1,111.66
- Monthly payment with overpayment
- £1,261.66
- Interest without overpaying
- £133,499
- Interest with overpaying
- £104,216
- New time to pay off
- 20 yrs 2 mths
Many lenders let you overpay up to 10% of the balance each year without an early repayment charge. Check your own deal. Assumes the rate stays the same for the whole term.
How it is worked out
- 1Your normal monthly payment is worked out from the balance, rate and years left.
- 2Extra payments go straight off the balance, so less interest builds up each month and the mortgage ends sooner.
- 3A one-off payment is taken off the balance now, and your monthly payment stays the same.
Worth knowing
- Many fixed-rate deals allow overpayments of up to 10% of the balance a year without a charge.
- Assumes the interest rate stays the same for the rest of the term.
Common questions
Is it better to overpay or save?+
It depends on your mortgage rate, savings rates, tax and whether you have an emergency fund. Overpaying saves interest at your mortgage rate but the money is harder to get back.
Sources
The rules and figures behind this calculator come from:
Results are estimates that assume a fixed interest rate for the rest of the term. They are not financial advice. Check overpayment limits and charges with your lender.
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