Paying a little extra against the principal every month clears the loan early and cuts the total interest. Move the sliders to see how much you save and how many years come off the term.
The extra amount is applied straight to the principal on top of the contractual monthly payment. Assumes a flat rate and no early-settlement penalty.
AED 199,721interest saved
and the loan clears 4 yrs 5 mo early
Indicative only. Check your facility agreement for partial-settlement limits and fees — some UAE lenders cap penalty-free overpayments at a percentage of the balance each year.
Every dirham of overpayment goes straight to the principal, so the balance interest is charged on shrinks faster. Over a 25-year loan even a modest monthly extra compounds into a large interest saving, because you stop paying interest on that principal for the rest of the term.
Because the balance falls faster than the schedule assumes, the loan reaches zero before its contractual end date. The calculator simulates the amortisation with and without your extra payment and reports exactly how many months earlier you are mortgage-free.
The two total-interest figures show the lifetime cost of the loan at the contractual payment versus the same loan with your overpayment. The gap between them is money that stays in your pocket instead of going to the bank.
UAE lenders often allow penalty-free partial settlement only up to a set percentage of the outstanding balance each year; beyond that an early-settlement fee applies. Confirm your facility's limit before committing to a large regular overpayment.
Overpaying earns a guaranteed return equal to your mortgage rate. If you can reliably earn more elsewhere after costs, investing may win — but the certainty and the psychological value of clearing debt early are worth weighing too.
Money used to overpay is locked into the property and hard to get back without refinancing or selling. Keep an emergency cash buffer before directing spare income at the mortgage.