Loan Repayment & Early Payoff Calculator
This early loan payoff calculator compares your standard schedule with extra monthly payments or a one-off lump sum to show the interest saved and your new payoff date. Enter your loan amount, rate and term below to see how soon you could be debt-free.
Quick answer: To see how much an early payment saves, enter the loan amount, interest rate and term, then add an extra monthly payment or a lump sum. A £10,000 loan at 7% over 5 years costs £198.01 a month and £1,880.72 in interest; paying £100 extra each month saves £719.39 and clears the loan 22 months sooner.
How to use the Loan Repayment Calculator
- Enter the loan details. Type the amount borrowed, the annual interest rate and the term in years or months.
- Add an early payment. Enter an extra amount to pay every month, a one-off lump sum, or both.
- Press Calculate Repayment. Compare the standard schedule with the faster one: monthly payment, interest saved, months saved and the new payoff date.
Formula & worked example
Formula: Payment = P × r ÷ (1 − (1 + r)^−n), with r = annual rate ÷ 12 and n = months. Extra payments reduce the balance directly each month.
Example: £200,000 at 6% over 30 years: payment £1,199.10 and about £231,676 total interest. Adding £200 a month cuts the term by roughly 8 years. (Figures shown in GBP, the calculator's default currency; pick any currency from the list.)
Method & source: Standard fixed-rate amortisation formula. See how we test our calculators.
Next step: try mortgage payments or compound interest or savings goal.
Loan Repayments and Overpayments
A loan repayment calculator works out your regular payment, the total interest you will pay and the date the loan will be cleared. It applies to mortgages, car loans, personal loans and student loans that use standard monthly amortisation.
This loan calculator with extra payments compares two schedules side by side – the standard one and one where you add an extra monthly payment or a one-off lump sum – so you can see what paying more really achieves.
Comparing Repayment Schedules
Enter the loan amount, annual interest rate and term. Add an extra payment to compare.
- Monthly payment: The fixed instalment that repays the loan over its term.
- Extra payments: A recurring monthly extra and/or a lump sum in the first month.
- Interest saved: The difference in total interest between the two schedules.
- Payoff date: When the loan ends with and without extra payments, based on your start month.
- Balance chart: How the outstanding balance falls in each scenario.
Extra amounts go directly against the principal after the month’s interest is paid, which is how most lenders apply overpayments. Check your lender’s terms for early repayment charges.
Why Comparing Repayment Options Matters
Interest is calculated on your outstanding balance, so every extra payment reduces the balance that future interest is charged on.
- See how much interest small overpayments can save.
- Find out how many months earlier you could be debt-free.
- Decide whether to overpay or invest instead.
- Budget with a clear payment amount.
- Compare loan offers with different rates and terms.
Seeing the interest saved and the new payoff date in black and white makes it far easier to decide how much extra you can commit to.
Worked walkthrough: a car loan
A £15,000 car loan at 7.9% over five years has a monthly payment of about £303.43 and costs roughly £3,205.71 in interest over 60 months. If you add £50 a month, the loan is cleared in 50 months instead of 60, ten months early, and total interest falls to about £2,649.48 – a saving of £556.23. A one-off lump sum in month one has a similar effect. The balance chart shows the two schedules side by side, and the results list the payoff month for each, based on the first payment month you choose. (Figures shown in GBP, the calculator's default currency; pick any currency from the list.)
Choosing a sensible loan term
- Check whether your lender allows overpayments without a fee, and whether extra money reduces the balance or just prepays future instalments.
- The earlier you overpay, the more interest you save, because interest is charged on the outstanding balance.
- Compare loans by total cost, not just monthly payment. A lower payment over a longer term usually means more interest overall.
- This calculator covers principal and interest only. Arrangement fees, insurance and early-repayment charges are not included.
- Rates can change on variable loans. Re-run the numbers when your rate changes to keep the schedule realistic.
What each payment is made of
A standard fixed-rate loan has one level payment, but its content changes over time. Each month the lender charges interest on the outstanding balance, and the rest of the payment reduces the balance. On a £20,000 loan at 6.5% over five years, the payment is £391.32. In the first month £108.33 of it is interest, so only £282.99 reduces the debt. As the balance falls, the interest share shrinks and the repayment share grows. This is called amortisation. (Figures in GBP, the calculator's default currency – pick any currency from the list.)
Shorter term or longer term?
A longer term lowers the monthly payment but raises the total cost. The same £20,000 at 6.5% behaves like this:
| Term | Monthly payment | Total interest |
|---|---|---|
| 3 years | £612.98 | £2,067 |
| 4 years | £474.30 | £2,766 |
| 5 years | £391.32 | £3,479 |
Compare loans by total cost, not just the monthly figure.
Loan calculator for common amounts: monthly payment for £3,000 to £90,000
Looking for the payment on a particular loan, such as a 5,000, 7,500, 12,000, 17,000, 22,000, 30,000 or 70,000 loan? The table shows the monthly payment for 19 common loan amounts at an example rate of 7% a year, repaid in equal monthly instalments over 3, 4, 5 or 6 years, plus the total interest over 5 years. The figures work in any currency, because the calculation only uses the numbers, and the calculator starts in pounds for UK loans.
| Loan amount | 3 years | 4 years | 5 years | 6 years | Interest over 5 years |
|---|---|---|---|---|---|
| 3,000 | 92.63 | 71.84 | 59.40 | 51.15 | 564.22 |
| 4,000 | 123.51 | 95.78 | 79.20 | 68.20 | 752.29 |
| 5,000 | 154.39 | 119.73 | 99.01 | 85.25 | 940.36 |
| 6,500 | 200.70 | 155.65 | 128.71 | 110.82 | 1,222.47 |
| 7,500 | 231.58 | 179.60 | 148.51 | 127.87 | 1,410.54 |
| 8,000 | 247.02 | 191.57 | 158.41 | 136.39 | 1,504.58 |
| 9,000 | 277.89 | 215.52 | 178.21 | 153.44 | 1,692.65 |
| 12,000 | 370.53 | 287.35 | 237.61 | 204.59 | 2,256.86 |
| 13,000 | 401.40 | 311.30 | 257.42 | 221.64 | 2,444.93 |
| 17,000 | 524.91 | 407.09 | 336.62 | 289.83 | 3,197.22 |
| 18,000 | 555.79 | 431.03 | 356.42 | 306.88 | 3,385.29 |
| 19,000 | 586.66 | 454.98 | 376.22 | 323.93 | 3,573.37 |
| 20,000 | 617.54 | 478.92 | 396.02 | 340.98 | 3,761.44 |
| 22,000 | 679.30 | 526.82 | 435.63 | 375.08 | 4,137.58 |
| 25,000 | 771.93 | 598.66 | 495.03 | 426.23 | 4,701.80 |
| 30,000 | 926.31 | 718.39 | 594.04 | 511.47 | 5,642.16 |
| 40,000 | 1,235.08 | 957.85 | 792.05 | 681.96 | 7,522.88 |
| 70,000 | 2,161.40 | 1,676.24 | 1,386.08 | 1,193.43 | 13,165.03 |
| 90,000 | 2,778.94 | 2,155.16 | 1,782.11 | 1,534.41 | 16,926.47 |
A different interest rate changes every figure, so treat the table as a guide and enter your own amount, rate and term in the calculator for an exact result. A longer term also costs more overall: 10,000 over 3 years carries 1,115.75 of interest, but over 7 years it carries 2,677.85. To see what the same monthly amount could grow to if you saved it instead, try the compound interest calculator.
How overpayments save interest
Extra money goes against the balance after that month’s interest is paid, so every later month charges less interest. Adding £100 a month to the loan above clears it in 47 months instead of 60, and cuts total interest from £3,479 to £2,656, a saving of about £824. A one-off lump sum in the first month works the same way, and the earlier extra money arrives, the more it saves. Check first whether your lender charges for early repayment.
Interest rate and APR
The calculator uses the interest rate and covers principal and interest only. The APR quoted in adverts also folds in certain compulsory fees, so it is usually higher than the plain interest rate and is best for comparing offers. Arrangement fees, insurance and early-repayment charges are not included here, so add them to your own budget.
Fixed and variable rates
The schedule assumes a fixed rate for the whole term. If your rate can change, rerun the calculation with the new rate and the remaining balance and term. For home loans, where amounts and terms are much larger, use the mortgage calculator, and to see the benefit of putting spare money into savings instead, try the savings goal calculator.
Frequently Asked Questions (FAQs)
Lenders sometimes round differently, add a small arrangement fee into the APR, or use a slightly different day-count method. Treat this result as a planning estimate and confirm the exact figure with your lender before signing.
A little. Paying extra as early in the month as possible means a few more days accrue against the lower balance, but the effect is small compared with how much extra you pay and how often.
Yes. Enter the loan amount, interest rate and term, then type your lump sum in the one-off lump sum field (it is applied in the first month) and any monthly overpayment beside it. The calculator starts in pounds and shows the interest saved, the months saved and the new payoff date. Check your lender’s settlement terms before you pay a large amount.
The term you enter sets the standard payoff date. Add an extra monthly payment or a lump sum to see a sooner date. For example, £10,000 at 7% over 60 months is cleared in 38 months with £100 extra a month.
Enter your loan details, then add an extra monthly payment or a lump sum and compare the payoff date with the standard schedule. A loan of £10,000 at 7% over 5 years is cleared in 38 months with £100 extra a month, and the interest falls from £1,880.72 to £1,161.33. The faster you pay it back, the less interest you pay, so even small regular overpayments help.
It depends on the amount and the rate. At 7%, a 12,000 loan over 6 years costs £204.59 a month and an 18,000 loan costs £306.88. The table of common loan amounts above shows 16 amounts over 3, 4, 5 and 6 years.
Enter the amount borrowed, the annual rate and the term. The result shows the total repaid and total interest, and how they change with extra payments.
Enter the loan as normal, then add an extra amount every month, a one-off lump sum (applied in the first month), or both. The calculator compares the two schedules and shows the interest saved, the time saved and both payoff dates. For example, 10,000 at 7% over 5 years costs 198.01 a month and 1,880.72 in interest. Paying 100 extra each month clears it in 38 payments instead of 60 and saves 719.39; a 1,000 lump sum alone saves 384.95 and 6 months.
It is the exact amount your lender asks for to close the loan on a particular date. It is usually the remaining balance plus interest up to that day, and it can include fees or an early repayment charge set by your loan agreement. This calculator does not know those terms, so it cannot give a settlement figure. Its balance chart gives a rough idea of what is left to repay, but ask your lender for the real number before you pay.
Payment = P × r ÷ (1 − (1 + r)^−n), where P is the loan, r the monthly rate and n the number of payments. The calculator applies it for you.
Yes, for any fixed-rate loan repaid in equal monthly instalments, such as a car loan or a personal loan. It covers principal and interest only, so arrangement fees, insurance, taxes and early repayment charges are not included. Add those to your own budget or check them with your lender.
At a 7% annual interest rate, a 4,000 loan over 6 years (72 monthly payments) costs 68.20 a month, with 910.11 of interest and 4,910.11 repaid in total. At 8% the payment rises to 70.13 a month. Enter your own amount, rate and term to see your figures; the calculator works with any currency.
Two approaches are common. Paying off the loan with the highest interest rate first usually saves the most interest overall, while paying off the smallest balance first clears whole debts sooner and can help you stay motivated. This calculator models one loan at a time, so run each loan separately and compare the interest saved by putting extra money towards it.
It depends on your agreement. Many lenders allow early repayment, but some charge a fee or add a set period of interest when you settle early, and the rules differ by lender and loan type. Ask your lender for a settlement figure in writing before you pay a large amount, then use the early loan payoff calculator above to estimate the interest you save from a lump sum or regular overpayments.
Type any amount in the Loan amount field. The same early loan payoff calculation applies to a 7,500 holiday loan, a 12,000 car loan, a 22,000 personal loan or a 90,000 home loan; only the amount, rate and term change.
Estimates only – not financial advice. Results assume a constant interest rate, regular payments and no fees, taxes or inflation unless stated. Real accounts and loans differ, and past or assumed returns are not guaranteed. This tool is not financial or investment advice; check your own account or loan terms and speak to a qualified adviser. See our full disclaimer.
Guides that use this calculator
- Loan Repayment Chart: Monthly Payments for £1,000 to £50,000 over 1 to 10 Years – Monthly payment for any loan from £1,000 to £50,000 over 1 to 10 years at 4%, 7% and 10%. A £10,000 loan at 7% over 5 years costs £198.01 a month.
- £22,000 Loan: Monthly Payment and Total Interest at 3, 5 and 7 Years – A £22,000 loan at 6% over 5 years costs £425.32 a month and £3,519.30 in interest. Payment tables for 4%–10% and 3, 5 and 7 years, and how to scale them.
- How Loan Repayments Work: Payment, Interest and Term Explained – A £10,000 loan at 7% over 5 years costs £198.01 a month and £1,880.72 in interest. See the formula, a month-by-month table and how term and rate change it.
- How to Pay Off a Loan Early: Interest Saved With Extra Payments – Paying £100 extra a month on a £10,000 loan at 7% saves £719.39 in interest and 22 months. Worked examples for overpayments and lump sums.