Calculator 04
Overpayment calculator
Overpayments come straight off the capital, so the interest saving compounds. Here is what a fixed monthly extra is worth.
Your mortgage
£
%
yrs
£
Most fixed deals allow overpayments of up to 10% of the balance each year — £24,000 here, or £2,000 a month — before an early repayment charge applies.
Interest saved
£35,714
Paying £1,506 a month instead of £1,306
Term cut by
5y 3m
Mortgage clear in
19y 9m
With and without overpayments
Normal monthly payment£1,306
Payment with overpayment£1,506
Interest without overpaying£151,666
Interest with overpaying£115,952
Total extra paid in£47,400
Net saving£35,714
Assumes the rate and the overpayment stay constant and that the lender reduces the term rather than the payment. Check whether your lender applies overpayments daily or annually.