Mortgage Overpayment Calculator

Calculate savings from making extra mortgage payments

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About This Calculator

The Mortgage Overpayment Calculator shows how making extra payments on your mortgage can save you money in interest and shorten your loan term. Even small overpayments can result in significant savings over the life of the loan.

How It Works

  • 1

    Enter your mortgage loan amount.

  • 2

    Input your interest rate and loan term.

  • 3

    Specify how much extra you plan to pay each month.

  • 4

    The calculator shows your new loan term, interest saved, and total savings.

Formula Explanation

Standard Payment = P × [r(1+r)^n] / [(1+r)^n - 1]

Standard monthly mortgage payment calculation.

Payment with Overpayment = Standard Payment + Monthly Overpayment

Add your monthly overpayment to the standard payment.

Interest Saved = Total Interest (Standard) - Total Interest (With Overpayment)

The difference between total interest paid with standard payments versus with overpayments.

Tips

  • Even $50-100 extra per month can save thousands in interest.

  • Extra payments go directly toward principal, reducing future interest.

  • Consider making one extra payment per year for significant savings.

  • Check with your lender about prepayment penalties before overpaying.

  • Overpayments shorten your loan term and build equity faster.

Frequently Asked Questions

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