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Financial Planning

Early Loan Repayment Calculator

See how much interest a one-time prepayment saves and whether to keep your payment (finish early) or keep your term (pay less).

Your inputs

Results

Interest saved

$30,181.70

New monthly payment
$1,319.91
Current monthly payment
$1,319.91
Remaining months after prepayment
202
Months saved
38
Interest without prepayment
$116,778.95
Interest with prepayment
$86,597.25

✓Exact calculation — rounded only for display

Inputs are never added to links for financial, salary or health calculators.

What this calculator does

A lump-sum prepayment reduces your balance immediately. Lenders then either keep the payment the same, so you finish sooner, or recalculate (recast) it over the remaining term. This tool compares both.

Formula and method

Keep payment: simulate the reduced balance with the original payment until paid off. Keep term: recalculate the payment for the reduced balance over the same remaining months. Interest saved = original remaining interest − new remaining interest.

Worked example

Calculated by this tool with its default inputs:

Inputs

  • Current balance: 200000 (any currency)
  • Interest rate (annual): 5 %
  • Remaining term: 240 months
  • One-time prepayment now: 20000 (any currency)
  • After prepaying, keep: The same payment (finish sooner)

Results

  • Interest saved: 30,181.7
  • New monthly payment: 1,319.91
  • Current monthly payment: 1,319.91
  • Remaining months after prepayment: 202
  • Months saved: 38
  • Interest without prepayment: 116,778.95

How to read the results

Keeping the payment saves more interest; keeping the term frees up monthly cash flow. Both reduce total cost.

Assumptions and limitations

  • Check for prepayment penalties or recast fees in your loan agreement.
  • Results are estimates for planning and education, not individual financial advice.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

Is prepaying always worth it?

It is a guaranteed return equal to your loan rate. Compare that with what you could earn elsewhere after tax, and keep an emergency fund first.

Methodology and verification

Result type
Exact mathematical calculation (rounded only for display)
Formula version
1.0
Automated verification
3 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Because this calculator can involve personal financial or health details, your inputs are never added to share links or saved to history. Privacy policy