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.
MORTGAGE TERM
Shorter mortgage term calculator
Estimated result
£1,582/mo
- Current payment
- £1,267
- Monthly increase
- £315
- Estimated interest saved
- £76,427
Assumes the rate remains constant and excludes product fees and early repayment charges.
See how a shorter term changes your monthly payment and total interest over the life of the mortgage.
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.
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.
- 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.
- 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.
How this fits the mortgage cluster
A shorter term is the trade-off layer between repayment comfort and total interest. If the monthly figure is too high, the next move is usually affordability, salary-needed or buy-vs-rent rather than forcing a term change too early.
SOURCES & REVIEW
Checked against official guidance
Last reviewed 1 September 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.