Monthly payment
Payment = P×r×(1+r)^n / ((1+r)^n-1)
Early Repayment Calculator
Loan Payoff Savings
360mo
30yr
30yr
24mo
Usually 0–2%. Often waived after 3 years.
1.2%
Summary
Monthly Payment
$1,264
Remaining Balance
$195,379
Interest Saved
+$23,479
Term Reduction
−78mo
≈ 6.5yr
Net Saving (saved interest − penalty)
+$23,239
Prepayment Penalty Rate: $240
Early repayment lowers future interest by reducing principal
This calculator estimates remaining balance, interest saved, term reduction, and net savings after a prepayment penalty. It helps compare whether spare cash should reduce debt, stay liquid, or be invested elsewhere.
Calculation rules
Interest saved
Saved = original remaining interest - new remaining interest
Net saving
Net saving = interest saved - prepayment penalty
How to use
- Enter principal, annual rate, loan term, and months already elapsed.
- Set the extra repayment amount and prepayment penalty rate.
- Review interest saved, term reduction, and net savings after penalty.
Frequently asked questions
What if net saving is negative?
The penalty is larger than the estimated interest saved. Still consider risk, liquidity, and peace of mind.
Does this assume lower payment or shorter term?
It assumes the same monthly payment continues, so the term becomes shorter.
Where do I find the penalty rate?
Check the loan agreement, lender app, or customer service. It varies by product and time elapsed.
This tool is for general calculation. Confirm official loan balance, fees, and repayment terms with the relevant lender.