MORTGAGE TERM
Shorter mortgage term calculator
See how a shorter term changes your monthly payment and total interest over the life of the mortgage.
What this calculator does
This calculator compares two repayment terms for the same mortgage balance and interest rate. It is useful when you want to know how much interest you can save by paying the loan off faster.
Worked example
A 25-year term will normally have a lower monthly payment than a 20-year term, but the shorter term usually saves interest over the full mortgage lifetime.
Common mistakes
Do not shorten the term without checking affordability.
Do not ignore early repayment charges or product restrictions.
Do not assume the same payment works on every mortgage product.
Why the result can differ
The payment changes with the interest rate and the remaining balance.
Lender fees and early repayment charges are excluded from the comparison.
Different lenders can price the same mortgage balance differently.
What this calculator does
It compares the same mortgage balance over two repayment terms so you can see the monthly payment trade-off against total interest. That makes it easier to decide whether a shorter term is realistic before you change the mortgage.
Worked example
A 25-year mortgage usually produces a lower monthly payment than a 20-year version, but the shorter term can save a lot of interest over the full loan life. The calculator shows both views side by side.
Why the result can differ
Interest rate, remaining balance, product fees and any early repayment charges all change the result. Two lenders can quote different monthly payments on the same balance if their pricing or rules differ.
SOURCES & REVIEW
Checked against official guidance
Last reviewed 14 July 2026 · Rule version GB-2026.27.1
Daily/weekly source monitoring. If a source changes, the affected rule set is reviewed before publication.
All source links are kept visible so you can verify the figures used on this page.
MoneyHelper: Repaying your mortgage early ↗Sources, methodology and update policy →Report an issue or correction →WHY RESULTS DIFFER
Why two users can see different results
Why the result can differ
Different tax codes, payroll periods, Scottish bands, pension methods or lender assumptions can change the outcome.
One-off bonuses, pay frequency, overpayments, allowances and reliefs can move the result away from a simple annual estimate.
Where a rule depends on eligibility or legal status, this page shows an estimate and links to official guidance.
This section is intentionally repeated on key tools so the explanation stays near the result instead of being hidden in a separate policy page.
COMMON QUESTIONS
Frequently asked questions
Does a shorter term always save money?
Usually it reduces total interest, but the monthly payment is higher.
Does this include fees?
No. Product fees and early repayment charges are excluded.