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Calculators · 07

Mortgage Overpayment Calculator

This calculator shows what regular monthly overpayments, a one-off lump sum, or both would save on your mortgage. It assumes your interest rate stays the same for the remaining term and that overpayments reduce the term rather than the monthly payment. Check your lender's overpayment allowance before paying extra — early repayment charges can apply.

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Overview

The mortgage overpayment calculator shows what paying a little extra would really do to your mortgage. Enter your current balance, interest rate and remaining term, then add a regular monthly overpayment, a one-off lump sum, or both. The calculator works out your contractual monthly payment, re-runs the repayment schedule with the extra money going straight at the balance, and reports the interest saved and how much sooner the mortgage clears.

Overpayments are powerful because every pound paid early stops interest being charged on it for the whole of the remaining term. On a typical repayment mortgage, even a modest monthly overpayment made consistently removes years from the term — and because the balance falls faster, each later payment clears more capital than it otherwise would. The calculator assumes your rate stays the same for the remaining term and that overpayments shorten the term (the way most UK lenders apply them by default) rather than reducing the monthly payment.

How it works

01
Enter your mortgage

The outstanding balance, your current annual interest rate and the term you have left in years and months — all three are on your latest mortgage statement.

02
Add your overpayment

A regular monthly overpayment, a one-off lump sum paid now, or both. The lump sum comes off the balance immediately; the monthly amount is paid on top of every instalment.

03
Compare the schedules

We simulate the mortgage month by month with and without the overpayments, and report the interest saved, the new payoff term and how much earlier you're mortgage-free.

Worked example

£200,000 at 4.5% over 25 years, overpaying £100 a month

A £200,000 mortgage at 4.5% with 25 years to run costs about £1,111.66 a month, and roughly £133,500 in interest over the full term. Overpaying £100 a month — about 9% extra — clears the mortgage in around 21 years and 6 months instead.

That single change saves about £21,142 in interest and makes you mortgage-free 3 years and 7 months earlier. The earlier in the term you start overpaying, the bigger the saving, because the balance — and therefore the interest — is at its largest in the early years.

Frequently asked questions

Is it better to overpay monthly or with a lump sum?
Pound for pound they work the same way — money off the balance stops interest accruing on it. A lump sum paid today starts saving interest immediately on the whole amount, while monthly overpayments build up gradually. If you already have the cash, the lump sum saves slightly more; if you're saving out of income, regular monthly overpayments are the practical route. The calculator lets you model both at once.
How much can I overpay without a penalty?
Most fixed-rate UK mortgages allow overpayments of up to 10% of the outstanding balance per year without an early repayment charge (ERC); some lenders allow 20%, and most trackers and standard variable rates have no limit. Exceeding the allowance can trigger an ERC of typically 1–5% of the excess, which can wipe out the benefit — check your mortgage offer before paying a large lump sum.
Should I overpay my mortgage or save the money instead?
Compare your mortgage rate with the after-tax interest rate you could earn on savings. If your mortgage charges more than savings pay — usually the case — overpaying is the better return, and it's risk-free. Keep an emergency fund first though: overpayments generally can't be withdrawn again, unless your mortgage has an offset or flexible drawdown facility.
Does overpaying reduce my term or my monthly payment?
That's your lender's choice to make — most apply overpayments to shorten the term while keeping the payment the same, which is what this calculator models and is what maximises the interest saving. Some lenders instead recalculate a lower monthly payment over the same term, which saves less interest but cuts your outgoings. Tell your lender which you want.
What if my interest rate changes during the term?
The calculator assumes the rate you enter applies for the remaining term. In reality your rate will change when a fixed or tracker deal ends, so treat the results as a like-for-like comparison of overpaying versus not overpaying, rather than a prediction of the exact payoff date. Re-run the numbers with your new rate whenever you remortgage.

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