Mortgage Payoff Calculator: How Much Is Gone?
The annual statement arrived and the balance looks close to what you borrowed. Enter your balance, rate and term to see how much you have paid off, what it would take to clear it today, and how many years an overpayment could cut.
Early mortgage payoff calculator
On a £200,000 mortgage at 4.5%, £200 a month cuts a 25-year term to 18 years 11 months and saves about £36,280 in interest.
The exact amount to clear the mortgage today is a redemption statement from your lender. It lists the balance, daily interest, any early repayment charge, and the exit fee.
Calculator Inputs
Basic Details
Overpayment Options
Extra payment made once at the start
Investment Comparison
Default 10% represents historical global market average
Default 2% for conservative property value appreciation
Investment vs Mortgage Payoff
Investment Value
£265,367
Interest Saved
£32,561
Net Benefit of All Investment Strategies
£111,920
Investing overpayments beats payoff-first strategy by this amount
Investment Breakdown
How much have I paid off my mortgage?
Enter the original loan, the term and the rate you took the mortgage on, and how long ago you took it. The calculator shows how much of your monthly payments to date have gone to the capital balance versus interest.
Standard amortisation, capital and interest split calculated by closed-form formula. Educational use only. Not financial, investment, tax or legal advice.
How to pay off your mortgage in 10 years
Pick a target payoff date. The calculator works out the monthly payment you would need to clear the balance in that time, and the overpayment above the standard monthly payment on a 25-year term.
Assumes no overpayment limits or early repayment charges. Most UK lenders allow up to 10% of the outstanding balance per year on fixed deals without penalty; check your own mortgage terms before accelerating.
How to calculate your mortgage payoff amount
Your mortgage payoff amount is your outstanding balance, plus interest up to the day you repay, plus any early repayment charge and any exit or admin fee. The calculator above gives you the first part. Your lender gives you the exact total.
Most people are surprised by how little the balance moves in the early years. In the first five years of a typical 25-year mortgage, 64p of every £1 you pay goes on interest.
- Find your outstanding balance. It is on your latest annual statement or in your lender's app, or the calculator above can estimate it.
- Add interest from your last payment to the day you plan to repay. Interest builds daily.
- Add any early repayment charge if you are still inside a fixed or discounted deal. This is typically 1% to 5% of the amount repaid.
- Add any exit or admin fee listed in your mortgage offer.
- Ask your lender for a redemption statement to confirm the exact figure and the date it is valid until.
Worked example
- A £200,000 repayment mortgage over 25 years at 4.5% costs £1,111.66 a month.
- After 5 years (60 payments) you have paid in £66,700.
- £24,284 of that has gone off the balance. The other £42,416 has gone on interest.
- The balance is still £175,716. Only 36% of what you paid has reduced what you owe.
- On £175,716, one month's interest is about £659, or about £21.66 a day.
Next step: before your next payment date this month, ask your lender for two numbers. The first is your current redemption figure. The second is how much of this year's overpayment allowance you have left on your deal.
UK mortgage overpayment rules and trade-offs
Overpayment allowances on UK mortgages
Most UK lenders allow you to overpay up to 10% of the outstanding balance per year on a fixed-rate deal without triggering an early repayment charge. On a tracker or variable rate, the limit is often 10% or unlimited depending on the lender. Anything above the cap usually incurs a charge, which is calculated on the amount you overpay.
The 10% figure is a typical figure, not a guaranteed one. Read your own mortgage offer document or call your lender to confirm the overpayment allowance and any early repayment charges on your specific deal. Educational use only.
Reduce the term or reduce the payment?
When you overpay, you usually have two choices: keep the monthly payment the same and shorten the term, or keep the term the same and reduce the monthly payment. Lenders differ on what happens after an overpayment. Some lower your monthly payment at the next recalculation, and others keep the payment and shorten the term, so tell yours which you want when you overpay.
The shorter-term option pays the loan off sooner and saves more interest overall. The reduced-payment option frees up cash flow now. The right answer depends on whether your goal is to be mortgage-free earlier or to redirect the freed payment into investments.
Overpay the mortgage or invest?
The standard rule of thumb: if your mortgage rate is higher than the after-tax return you can realistically expect from investing (historically 5 to 7 per cent a year for a global equity portfolio, less for cash), overpaying wins on a pure numbers basis. If your mortgage rate is below that, investing wins on the same basis. Cash savings above your emergency fund should usually be invested rather than overpaid, given current mortgage rates.
The right answer for you depends on your rate, your investment timeline, your tax position and how you actually behave when markets fall. Use the Invest vs Payoff tab above to compare the two strategies on your own numbers.
Where does Delphina fit?
The mortgage question is one part of a much bigger picture: how much goes into your pension and ISA each month, what your current net worth is, and what age you actually want to stop work. Delphina models all of those on your actual numbers, then tells you whether the mortgage decision is the biggest lever or whether it is a smaller lever next to pension contributions. Free to start.
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