Plan your
repayments.

Every extra pound or dollar goes straight against the principal, so less interest builds up on the remaining balance. Even a small regular overpayment can knock months or years off the term and save a surprising amount of interest over the life of the loan.

Yes — on a standard fixed-rate loan the scheduled monthly repayment stays the same for the whole term. Overpaying does not lower that scheduled figure; instead it shortens the term, because the loan is repaid before the final scheduled payment.

Yes — stretching the same amount over more years lowers the monthly repayment but increases the total interest paid, because the balance stays higher for longer. A shorter term or a regular overpayment both work against this by clearing the principal faster.

This calculator assumes every extra payment goes straight toward the principal with no restriction, which matches most modern loans, but some fixed-rate mortgages and older loans charge an early repayment fee or cap the amount you can overpay each year. Always check your loan terms before relying on the projected savings.

The simulation stops as soon as the balance reaches zero, so the final month’s payment is only whatever is left owing rather than the full scheduled amount. That is why the months-saved figure can land partway through a calendar month in real life.

A higher rate means more of each scheduled payment goes to interest rather than principal, so overpaying early saves relatively more, since it stops that interest from compounding on a larger balance for longer. On a low-rate loan the same overpayment still helps, just by a smaller margin.

Overpaying guarantees a return equal to the loan’s interest rate, since that is exactly what you avoid paying. If you can reliably earn more elsewhere after tax, investing may win financially, but overpaying is the safer, guaranteed choice and also reduces risk by shortening your debt.