Mortgage overpayment calculator
This tool shows how much interest you could save by overpaying your mortgage, versus how much interest you’d earn by saving.
Mortgage overpayment calculator
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How to use this calculator
You’ll need to add a figure into each box in order to generate a result.
First, add the remaining amount of mortgage debt you have (how much you have left to pay off), the remaining years of your loan term and the interest rate being charged.
Next, add details of your overpayments – whether that’s what you already pay, or what you’re intending to pay.
Finally, add the interest rate you receive on your savings account. If you have more than one, choose the rate for the account that holds the largest proportion of your money.
Click the “Calculate” button to generate your results.
How it works
This calculator takes the interest rate you’re currently paying on your mortgage and the remaining loan duration to gauge your current mortgage payments, and the total amount of interest you’re set to pay.
It shows the impact your monthly overpayments could have over the remaining time of your loan, and compares the mortgage interest you could potentially save over this time compared to the savings interest you could earn over the same repayment period.
Depending on which number is bigger, the calculator then makes a recommendation as to whether you’re better off overpaying your mortgage, or saving this money instead.
It provides a full explanation, and a graph showing how your mortgage debt would be affected by overpayments over time.
It’s worth noting this calculator makes several assumptions, so should only be used as a guide rather than relied upon for specific figures.
It assumes you are the sole beneficiary of the property and purchased it yourself. It does not account for any annual limits your lender places on overpayments (exceeding these limits could result in early repayments charges).
It also assumes that the mortgage and savings interest rates remain the same for the duration of your remaining mortgage term, and that monthly overpayments remain the same during this time, too.
What is this calculator useful for?
Anyone who’s unsure whether they’re better off saving extra money or using it to pay down their mortgage could benefit from this calculator.
It can also show whether your decision should change if you were to switch to a new savings account or get a new mortgage deal.
