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Mortgage Overpayment Calculator

Estimate only

Overpaying reduces the balance that interest is charged on, so it can cut both the total interest and the length of your mortgage. This tool illustrates the difference between keeping your current payment and adding an overpayment.

Applied once every twelve months.

Estimated interest saved

£33,849

And around 5 years off the term.

Current monthly payment

£1,169.18

New monthly payment

£1,319.18

Time saved

5 years

New estimated repayment period

20 years 1 month

Interest without overpaying

£150,754

Interest with overpaying

£116,905

Things to be aware of

  • Most UK lenders allow overpayments of up to 10% of the outstanding balance each year without charge, but limits and early repayment charges vary by product. Check your mortgage offer before overpaying.

Estimate only

Lender overpayment limits, early repayment charges and mortgage terms vary. Some lenders reduce the term, others reduce the monthly payment — the effect differs. Check your mortgage offer or ask your lender before making overpayments.

How this calculation works

We calculate your contractual monthly payment from the balance, rate and remaining term, then run two month-by-month simulations: one with the contractual payment only, and one with your overpayment (plus any lump sum every twelfth month). The difference in months and in total interest is shown.

contractual payment M = P · r ÷ (1 − (1 + r)^−n)
each month: interest = balance × r; balance = balance + interest − (M + overpayment)
saving = interest(no overpayment) − interest(with overpayment)

Assumptions

  • The interest rate stays the same for the remaining term.
  • Overpayments are made every month and reduce the term rather than the payment.
  • No early repayment charges or overpayment limits are applied.

Limitations

  • Most lenders cap penalty-free overpayments, commonly at 10% of the balance a year.
  • Interest calculation frequency varies between lenders.
  • Overpaying is not automatically the best use of money; this tool does not advise you.

Last reviewed: 1 September 2026 · Calculation version 1.0.0

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