See exactly how much interest you can save and how many years you can cut from your mortgage or loan — just by overpaying a little each month.
*Based on 3.5% interest rate — enter your own numbers below
Enter your loan details and extra monthly payment to see your savings instantly.
Adjust any value to recalculate in real time
Minimum payment based on your loan details
💡 Even £100/month can save you thousands!
| Metric | Without Overpaying | With Overpaying |
|---|---|---|
| Calculate above to see comparison | ||
Understanding the maths behind overpaying your mortgage or loan.
Instead of paying just your minimum monthly amount, you add an extra sum — even £50–£200 — which goes directly to reducing your outstanding principal balance.
Because the extra payment reduces your capital balance, the amount of interest calculated each month gets smaller and smaller — the snowball effect works in your favour.
The compounding effect means you don't just save the interest on one payment — you save interest on all future payments too. This can cut years off a 25-year mortgage.
On a £250,000 mortgage at 3.5% over 25 years, overpaying just £200/month could save you over £30,000 in interest alone.
Cut years off your loan term. The same £200/month overpayment could see you mortgage-free over 4 years early.
A lower outstanding balance means higher equity in your home, giving you access to better remortgage deals when the time comes.
Owning more of your home outright reduces your financial risk if interest rates rise or your income changes unexpectedly.
Overpaying your mortgage gives a guaranteed return equal to your interest rate — often better than a savings account after tax.
Reducing your debt burden reduces financial stress. Many people report significantly lower anxiety after committing to overpaying.