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Mortgage Overpayment & Payoff Calculator

See exactly how much interest and how many years you shave off your mortgage with monthly or lump-sum overpayments — and check against your annual Early Repayment Charge (ERC) cap.

Mortgage details

Current balance, rate and remaining term

£
%
yrs
mos

Overpayment plan

Standard payment is £1,493/mo

£
%
£
£

Data as of Nov 2026 · Source: your lender's mortgage terms. The 10% penalty-free cap and ERC schedule vary by lender and product — the defaults here are typical UK fixed-rate terms, not advice; check your offer letter

How this is calculated

With monthly rate r = (annual_rate / 100) / 12 and n = years × 12 + months, the baseline contractual payment is M = P · [r(1 + r)^n] / [(1 + r)^n − 1].

Each month t = 1..n, interest is charged on the opening balance I_t = B_(t-1) · r, and your total principal reduction is min(B_(t-1), M − I_t + extra_monthly + lump_sum_t). Because every extra unit of principal immediately reduces next month's interest base, savings compound over the remaining term.

UK and Australian fixed-rate mortgages commonly allow overpaying up to 10% of the opening annual balance per mortgage year without triggering an Early Repayment Charge (ERC).

Result

Payoff in 16 yrs 4 mo instead of 22 yrs

Total interest saved
£44,292
Total interest drops from £144,275 to £99,983
Time shaved off
5 yrs 8 mo
68 monthly payments eliminated
New debt-free date
1 Mar 2043
Baseline ends 1 Nov 2048
New monthly outflow
£1,743
£1,493 base + £250 extra
Year 1 ERC-free cap
£2,083/mo
10% of £250,000 = £25,000/yr

ERC lock-in penalty & offset account module

Fix expires 1 Nov 2029 (36 mos / 3 yrs left)

£
Net savings (Pay now)
£69,644
£69,904 interest saved − £260 ERC fee
ERC penalty fee (Pay now)
£260
Tiered ladder [2%→1%→0.5%] on excess
Wait until fix ends
£69,660
£69,264 loan saved + £396 net interest (£0 ERC)
Repayment strategyGross interest savedERC penalty deductedInterim net savings interestNet benefitPayoff term
Path A · Pay immediately (absorb ERC)£69,904−£260£0£69,64413 yrs 10 mo
Path B · Cap at 10%/yr & clear excess after 1 Nov 2029£69,264£0+£396£69,66013 yrs 11 mo
%
%
Offset / mortgage interest saved
£78,862
Earns tax-free 4.50% effective return with £0 ERC
After-tax savings interest earned
£32,059
At 4.2% gross (3.36% after 20% tax)
Offset vs. savings advantage
+£46,804
Offsetting / paying down mortgage beats taxable deposit
ProOffset account vs. after-tax savings comparison & PDF/CSV export$12 once

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Month-by-month balance trajectory

Baseline schedule (dashed) vs accelerated payoff (solid)

Today (£250,000)Month 264 (22 yrs)
With overpayments (16 yrs 4 mo)Baseline schedule (22 yrs)
YearBaseline bal.Accelerated bal.OverpaidERC status
Year 1£243,189£235,126£8,000OK (32% of cap)
Year 2£236,065£224,570£3,000OK (13% of cap)
Year 3£228,614£208,528£8,000OK (36% of cap)
Year 4£220,821£196,749£3,000OK (14% of cap)
Year 5£212,669£184,429£3,000OK (15% of cap)
Year 6£204,144£171,543£3,000OK (16% of cap)
Year 7£195,226£158,065£3,000OK (17% of cap)
Year 8£185,899£143,968£3,000OK (19% of cap)
Year 9£176,143£129,224£3,000OK (21% of cap)
Year 10£165,939£113,801£3,000OK (23% of cap)
Year 11£155,266£97,671£3,000OK (26% of cap)
Year 12£144,103£80,799£3,000OK (31% of cap)
Year 13£132,428£63,153£3,000OK (37% of cap)
Year 14£120,216£44,696£3,000OK (48% of cap)
Year 15£107,442£25,390£3,000OK (67% of cap)
Year 16£94,082£5,198£3,000Over cap (+£461)
Year 17£80,109£0£750Over cap (+£230)
Year 18£65,493£0£0—
Year 19£50,206£0£0—
Year 20£34,216£0£0—
Year 21£17,492£0£0—
Year 22£0£0£0—
Lifetime interest£144,275£99,983£58,750Saved £44,292
Built from user complaints

What people hate about the other tools

We read the reviews of the incumbents before writing this page. Every complaint below maps to a decision in the tool above.

  • Just chuck it all in the offset — standard overpayment calculators only model direct principal paydown and ignore offset liquidity and tax rules.
    r/AusFinance & r/UKPersonalFinance (Reddit) · no offset account comparison
    In this toolCompares direct principal overpayment, offset account balance, and after-tax savings side by side.
  • Fixed-rate mortgages usually cap penalty-free overpayments at 10% per year, but standard calculators never track the cap or deduct ERC penalties.
    r/UKPersonalFinance (Reddit) · ignores 10% cap & ERC penalties
    In this toolMonitors the 10% annual penalty-free allowance in real time and deducts ERC fees from net interest saved.
  • Most online calculators only shorten the mortgage term and lack a toggle to keep the same term while lowering future monthly payments.
    r/UKPersonalFinance & MSE Forum · no payment reduction mode
    In this toolProvides a one-click toggle and side-by-side view comparing Term Reduction against Payment Reduction.

One-line difference: All-in-one UK/AU/US calculator modeling multi-lump-sum timelines, 10% ERC penalty caps, offset accounts, and LTV drops.

How this is paid for

Free forever, Pro when you need the paperwork

Free + mortgage affiliate + one-time Pro

Free no signup, no card

  • Monthly & single lump-sum interest savings and payoff date forecast
  • Side-by-side Term Reduction vs. Payment Reduction mode comparison
  • Basic 10% annual penalty-free overpayment cap alert for fixed rates

Pro $12 once

  • Irregular multi-lump-sum timeline & LTV remortgage tier simulator
  • Tiered Early Repayment Charge (ERC) net savings deduction engine
  • Offset account vs. after-tax savings comparison & PDF/CSV export

Pricing benchmarked against what the incumbents charge. See the full monetization map → · Already paid? Restore access

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