Loan Early Payoff Calculator
See how much sooner your loan finishes, and how much interest you save, by paying a bit more every month or a lump sum now.
Money & FinanceResult
Interest you'd save
$893.85
- New term
- 47 months
- Term shortened by
- 13 months
- Old total repaid
- $23,761.44
- New total repaid
- $22,867.59
How is it calculated?
Enter your remaining balance, interest rate and remaining term. Then choose whether you'd pay a bit more every month or make a one-off extra payment now, and enter the amount. The tool compares it with your regular schedule to work out your new term and the interest you'd save.
Formula
Regular payment = Balance × r ÷ (1 − (1+r)^−Term) Extra per month: the new term is when payment + extra brings the balance to zero Lump sum: the new term is when the regular payment brings (Balance − Lump sum) to zero
Example
Remaining balance: $100,000 · Interest rate: 3.5% · The rate is: Per month · Remaining term: 24 · How do you want to pay extra?: A bit more every month · Extra per month: $1,000 → Interest you'd save: $10,338.81
Similar Tools
Toolbox Get your Toolbox ready.
Star the tools you use most and, with an account, they follow you to every device.
Frequently asked questions
Which saves more: a monthly extra or a lump sum?
For the same total amount, a lump sum paid now usually saves more, because the interest drops immediately on the lower balance. A monthly extra's advantage is that you can spread it out over time.
Does my lender charge a fee for paying early?
Some loans charge an early repayment fee (often a small percentage of the remaining balance). This calculator doesn't include one; check with your lender and subtract it from the savings.
Does extra payment lower my instalment or shorten the term?
This tool works out the common option of keeping the instalment the same and shortening the term. Some lenders also offer lowering the instalment while keeping the term the same; that's a different calculation.