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Mortgage Overpayment Calculator

See the dramatic effect of even small monthly overpayments on your mortgage term and total interest.

Short answer

Overpaying just £100/month on a typical UK mortgage shaves 2–3 years off the term and saves £10,000+ in interest. Most lenders allow up to 10%/yr penalty-free.

Your mortgage

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How it works

Each extra £ goes 100% to principal, reducing future interest charges. The earlier you overpay, the more interest you avoid — overpayments in year 1 save much more than the same amount in year 20.

Worked example

£180k at 4.5% over 22 years: £1,074/mo, £103,544 total interest. Adding £150/mo extra: clears in 17.6 years, saves ~£28,000 interest.

Who should use this

  • Anyone with spare cashflow each month
  • Borrowers near the end of a fix who want to reduce balance before remortgaging
  • Pre-retirees clearing the mortgage

Common mistakes

  • ×Overpaying past the lender's allowance and triggering ERCs (typically 1–5%)
  • ×Overpaying when high-interest debt (credit cards) still exists
  • ×Forgetting an emergency fund — overpayments are hard to get back

Frequently asked questions

Should I overpay or invest?

Mathematically: invest if expected returns > mortgage rate after tax. Emotionally: many prefer the certainty of a smaller mortgage.

Reduce term or reduce monthly?

Reducing the term saves more interest. Reducing monthly gives flexibility but lets the loan run full term unless you keep overpaying.

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