Your loan and overpayment
This assumes a fixed interest rate and regular monthly overpayments. Check your lender's rules, fees and overpayment limits before making extra payments.
How loan overpayments can help
An overpayment reduces the outstanding balance faster. Because future interest is usually calculated on that lower balance, you may pay less interest overall and finish the loan sooner.
Worked example
For a £20,000 repayment loan at 6% with 5 years remaining, adding £100 to the normal monthly payment can reduce the number of payments and lower total interest, assuming there are no overpayment charges.
Frequently asked questions
Can lenders charge for overpayments?
Some lenders may apply early repayment charges or limit how much you can overpay without fees. Always check the terms of your specific loan.
Does this calculator include one-off lump sums?
No. This version models a fixed extra monthly payment. A future lump-sum calculator can model one-off overpayments separately.
Will my lender calculate the same result?
Not always. Actual lender calculations can differ because of daily interest, fees, payment dates and rounding.