Money · Mortgage engine
Mortgage Overpayment Impact Tool
See exactly how much interest you save and how many years you cut by overpaying your mortgage each month.
Instant result
Plain-English why
Copyable takeaway
What this means
This engine compares two amortization schedules — your standard payment and your standard payment plus the overpayment — and reports the difference in interest and time.
Formula used
Savings = standard amortization interest minus overpayment amortization interest
Worked example
A £200,000 mortgage at 4.5% with 20 years remaining, overpaid by £200 per month, saves around £22,000 in interest and cuts roughly 4 years from the term.
Common questions
Are there penalties for overpaying?
Many mortgages allow overpayment of up to 10% of the balance per year without penalty. Check your mortgage terms or speak to your lender before making additional payments.
Why does a small monthly overpayment save so much?
Every extra pound paid reduces the principal, which reduces the interest charged the following month. The saving compounds across the remaining term, which is why even a modest overpayment can cut thousands from the total.
Plain-English summary
Enter your mortgage details to find out how much a regular overpayment saves over the life of the loan.
This section translates the result into a short, direct takeaway rather than leaving the page at a bare number.
Read the guide
How mortgage overpayments work and why they save more than you expect
A plain guide to what happens when you pay more than your required monthly mortgage payment and why the saving compounds over time.
Read the guideRelated instruments
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