Is it better to overpay my mortgage or save?

It depends on your rates. If your mortgage rate is higher than your savings rate (after tax), overpaying usually saves more. But savings give you flexibility and access to your money in emergencies.

How much interest can mortgage overpayments save?

Significant amounts over time. For example, overpaying £200/month on a £200,000 mortgage at 4.5% could save over £30,000 in interest and shorten the term by 5-7 years.

When does saving beat overpaying a mortgage?

When your savings rate (after tax) exceeds your mortgage rate. For example, if your mortgage is 3.5% but you can earn 5% on savings, the maths favours saving — though there is no guarantee savings rates will stay high.

Mortgage Overpay vs Save Calculator

Compare mortgage interest saved from overpayments against interest earned by saving the same amount. If your mortgage rate exceeds your savings rate,…

What this calculator does

This calculator compares two scenarios: (1) making monthly overpayments on your mortgage to reduce interest and term, and (2) saving the same monthly amount at a given interest rate. It shows the financial outcome of each option.

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