Loan details
Enter your figures to compare standard repayments vs overpayments.
Results
Payment timeline
| Checkpoint | Payment | Interest | Balance |
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| Checkpoint | Payment | Interest | Balance |
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- Monthly payment shows your contractual payment and the higher monthly total with overpayments.
- Interest saved compares estimated interest paid across both scenarios.
- Payoff date shows when the loan would be cleared in each scenario and how much time you save.
- Check your lender’s terms for any overpayment limits or charges.
Assumptions and interpretation
This calculator is designed for standard fixed-term repayment loans where you add a regular monthly overpayment.
It assumes a steady APR across the remaining term and applies your monthly overpayment on top of the standard repayment each month. The estimate is most useful when your lender reduces the balance immediately and does not charge an early repayment fee for the extra amount.
It does not model settlement quotes, changing rates, promotional periods, or lender-specific rules on how overpayments are processed.
Worked UK example
Example only. Actual lender treatment and settlement methods can differ.
Example: a £10,000 loan over 5 years at 7.9% APR with a £50 monthly overpayment. The calculator compares the standard repayment path with the overpayment version, then estimates how many months you could cut from the term and how much interest might be saved.
How the Calculation Works
This calculator compares a standard loan repayment schedule with one that includes an extra payment every month.
The tool first estimates the normal repayment path using your outstanding balance, APR, remaining term and any fee added to the borrowing. It then reruns the same schedule with the overpayment applied on top of the standard monthly repayment.
The difference between those two schedules shows how much sooner the balance could be cleared and how much interest may be avoided.
Limitations
Real lender calculations and overpayment handling can vary slightly from a planning estimate.
This estimate does not account for early repayment charges, changing rates, lender-specific recalculation rules, or exact settlement processing. Small rounding differences are normal.
Use it as a planning tool to compare overpayment options, not as a substitute for a formal lender figure.
What to Do Next
Use the result to decide whether regular overpayments fit your wider repayment plan.
Compare this result with the Personal Loan Repayment Calculator to review the base cost of the loan, and read Loan Overpayments Explained for the practical rules many lenders apply.
If the overpayment looks tight against your budget, also review the Emergency Fund Planner before committing extra cash every month.
FAQs
Common questions about overpayments
Does overpaying always reduce the loan term?
Often it does, but not always. Some lenders reduce the monthly payment instead, or apply overpayments at set times. Check your loan agreement.
Is it better to overpay monthly or make a lump sum?
Monthly overpayments reduce your balance sooner, which can reduce interest earlier. Lump sums can also be effective, especially if you have irregular income. Fees and lender rules matter.
Why are my numbers slightly different from my lender’s?
Lenders can calculate interest daily, round differently, and apply fees differently. Treat this tool as a close estimate for comparison.
What if the arrangement fee is paid upfront instead?
This tool treats the fee as added to the loan balance for an estimate. If you pay it upfront, your financed balance is lower, which reduces interest slightly.
Can overpayments trigger early repayment charges?
Some loans include early repayment charges or limits on overpayments. If charges apply, compare the fee against the interest saved.
Does overpaying affect my credit score?
Overpaying a loan generally reduces your outstanding balance and can be positive, but credit scoring depends on your full profile and repayment history.