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Mortgage overpayment calculator

By Gliora Team

Mortgage overpayment calculator

Lower the payment $616.47/month

You save $8,452.68 in interest

Shorten the term 20 years and 5 mo

You save $19,122.43 in interest

Current payment: $711.32/month · Shortening the term usually saves more interest; lowering the payment gives more monthly breathing room.

Calculated with a French (equal-instalment) amortization system and a constant rate; it doesn't include early-repayment fees or taxes. For guidance only, not financial advice.

Year 2 · $365 interest + $347 principal
MORTGAGE
Balance owed Principal paid Interest paid A $150,000 loan at 3% for 25 years, with a fixed principal and interest payment of $711 (taxes, insurance and PMI not included). Each coin is $5,000. The tray in front is one payment: the first one sends $375 (53%) to interest, because interest is charged on the whole balance. As the balance shrinks, the divider slides and each payment pays down more principal. By the end you'll have paid $63,395 in interest.

This mortgage overpayment calculator works out how much interest you save by making an extra payment on your mortgage, whether you use it to lower the monthly payment or to shorten the remaining term.

Lower the payment or shorten the term

When you overpay capital on a mortgage, you can either lower the payment (same term, you pay less each month) or shorten the term (same payment, you finish earlier). Shortening the term almost always saves more interest; lowering the payment improves your monthly cash flow.

The assumptions

This tool uses a French (equal-instalment) amortization system with a constant rate. It doesn’t include early-repayment fees or taxes — for guidance only, not financial advice.

FAQ

What saves more: lowering the payment or shortening the term?
Shortening the term usually saves more interest, because you pay for less time overall. Lowering the payment saves less interest but gives you more monthly breathing room.
When does it make sense to overpay a mortgage?
When your mortgage rate is higher than what you'd safely earn by investing that money instead. If your mortgage rate is very low, investing may return more.
Are there fees for overpaying early?
There may be, depending on your contract and rate type (fixed or variable). This calculator doesn't include them — subtract any fee from the savings shown.
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