Overpayments

pollyanna24

I am starting to get a bit dispirited about my overpayments.

I save up to overpay £500 and this has happened most months this year. I am up to £3,500 overpayments, so seven times this year.

However, what I don't understand is why my spreadsheets do not seem to completely take this into account.

I have spreadsheets which I update manually (every day as interest is sometimes a penny more or less than my spreadsheets say). They are very basic as I don't know any complicated formulas.

But looking at December 2017 before I had overpaid anything this year, my estimate for the end of 2018 was £175,464.22.

Now, after the overpayments over the year of £3,500, the estimated figure is £172,053.17.

I expected a difference of more than the £3,500 taking into account the few pennies interest a day I will have saved by making the overpayment, but it's not. It's only £3,411.05. What am I doing wrong? Calculations? Or is there some other reason why the overpayments aren't what they seem?

[Deleted User]

There's an error in you calculations.

Your annual statements will show you your end of year balance.

pollyanna24

Deleted_User wrote: »

There's an error in you calculations.

Your annual statements will show you your end of year balance.

Thanks. At least they are going down I guess.

When I make the overpayment next month, that should reduce what the figure is at the end of 2018 by £500 and then I will just have to pay a closer eye on where I am going wrong when I recalculate the daily interest.