Mortgage Optimisation
Overpayment Calculator
See how extra payments reduce your mortgage term and total interest paid.
No prepayment penalty on most conventional loans. Overpayments reduce principal directly; specify 'principal only' to lender.
$
%
years
$
$
Results
Time Saved
3y 4m
Interest Saved
$15,124
Net Saving (after fees)
$15,124
New Term
21y 8m
Original Term: 25 years
→
New Term: 21 years 8 months
Interest Paid Comparison
How It Works
- 1Extra payments reduce your outstanding principal faster, which means less interest accrues each month.
- 2A lump sum payment immediately reduces the principal, saving interest over the remaining term.
- 3Early repayment fees (if applicable) are deducted from the gross interest saving to show the true net benefit.
- 4The calculator uses the standard amortisation formula to recompute the schedule with the extra payments applied from month 1.
FAQ
Is it better to overpay monthly or make a lump sum?
Both reduce interest, but a lump sum saves more because it reduces the principal immediately. Monthly overpayments compound over time. The best strategy depends on your cash flow and whether early repayment fees apply.
What is the early repayment fee in Portugal?
In Portugal, variable-rate mortgages have a 0.5% early repayment fee on the amount repaid. Fixed-rate mortgages have a 2% fee. In France, the fee is capped at 3% or 6 months of interest, whichever is lower.
Should I overpay my mortgage or invest?
If your mortgage rate is higher than your expected investment return, overpaying wins. If your investment return exceeds the mortgage rate, investing is better. Use the Mortgage vs Invest calculator to compare both scenarios.