Loan Early Repayment Calculator
Estimate the potential savings and impact of making early repayments on your loan using our online calculator. By inputting key parameters such as the loan amount, interest rate, remaining term, and additional repayment amount, you can calculate the potential reduction in interest paid and the shortened loan term.
Things to Consider When Taking Out a Loan
 Affordable: Make sure that you are able to afford the loan repayments. It's down to you and in the end only you actually know if you will be able to repay it. If you take out a loan and aren't able to repay it, then your credit ratings will be terrible and you will have a difficult financial future.
 Loan Security: Make sure that you read the small print of your agreement. Remember, every detail is critical as if you don't keep up with your loan repayments then you could have your home repossessed.
 Research: Take some time when you are looking at different lenders. There are plenty of banks of lenders out there, meaning there are always deals available for you to look at. Taking this time could save you some money.
 Interest Rates: Not only should you find the best interest rate, but make sure that the interest rate balances out with the lifespan of the loan. You may be getting a smaller interest rate although you could be paying just as much if the time in which the loan is repaid is high. It might be tempting to go for the loan interest rate, but make sure it balances out.
 Borrow Little, Repay Quickly: Pay back the loan as quickly as possible. This will save you money and will stop you from getting in any financial trouble. Borrow only what you need, nothing more, and repay it as soon as you can.
 Pay Day Loans: Taking out a pay day loan is dangerous for your financial profile. A pay day lender has no concern for you as a person, they only care about your money. Regardless of your financial situation, never as much as consider these people.
 Don't Loan at All: In the modern day and age, it's difficult to avoid taking out a loan for some people. While previous generations survived with their rare treats and their minimal financial stresses, thing's have changed. A lot of people in the current day and age have grown accustom to certain ways of living, which can be expensive. Instead of taking out a loan, work for your few pleasures in life, it'll make you feel better about yourself as well as stopping you from taking a huge financial risk.
 Choose Between a Personal Loan or a Car Loan: While a personal loans usually offer a far better interest than car loans, take the time to do your research. With consideration of second hand dealerships APR rates, it's very uncommon for you to find a car loan lender who has better rates than a personal loan. However if you are looking to buy a new car, you really should take your time and look at a variety of different loans till you find exactly what you're looking for.
What is Loan Early Repayment Calculator
A Loan Early Repayment Calculator is a financial tool used to determine the potential savings and impact of making early repayments on a loan. It helps individuals assess the benefits of paying off a loan early by providing estimates on interest savings, loan term reduction, and revised monthly payments.
Here's how a typical Loan Early Repayment Calculator works:

Loan Details: You input the relevant details about your loan, including the loan amount, interest rate, and original loan term.

Early Repayment Amount: You specify the additional amount you intend to repay towards the loan, either as a lump sum or increased monthly payments.

Calculation: Using the provided inputs, the Loan Early Repayment Calculator calculates the potential savings and changes in loan terms. It determines the revised loan term, adjusted monthly payments, and the total interest saved by making the early repayments.

Displaying the Result: The calculator presents the calculated results, including the revised loan term, new monthly payment amount, and the total interest saved. It may also provide a comparison between the original loan repayment schedule and the revised repayment schedule with early repayments.
The Loan Early Repayment Calculator allows borrowers to evaluate the impact of making additional payments on their outstanding loan balance. By inputting different early repayment amounts, individuals can assess how it affects their loan term, monthly payments, and overall interest paid.
It's important to note that the calculated results are estimates based on the provided inputs and assumptions. Actual savings and changes in loan terms may vary depending on factors such as lender policies, specific loan terms, and applicable fees. Therefore, it's advisable to consult with the loan provider for accurate and personalized information regarding early repayment options and the associated impact on the loan.
Loan Early Repayment Calculator Example
Certainly! Here's an example of a Loan Early Repayment Calculator that helps you determine the savings and new repayment schedule if you decide to make early repayments on your loan:
Let's assume we have the following loan details: Principal Amount: $10,000 Interest Rate: 6% per year Loan Term: 5 years Remaining Loan Term: 3 years Additional Payment: $2,000
To calculate the savings and new repayment schedule, we need to consider the remaining loan term and the additional payment amount.
Step 1: Calculate the Current Monthly Installment We can use the loan details to calculate the current monthly installment using the formula mentioned in the previous response.
Monthly Installment = Total Repayment Amount / Number of Months
Number of Months = Remaining Loan Term in Years * 12
Number of Months = 3 * 12 = 36 months
Total Repayment Amount = Principal + Total Interest
Total Interest = Principal * Interest Rate * Loan Term
Total Interest = $10,000 * 0.06 * (5  3) = $1,200
Total Repayment Amount = $10,000 + $1,200 = $11,200
Monthly Installment = $11,200 / 36 = $311.11 (rounded to two decimal places)
Step 2: Calculate the New Total Repayment Amount with Early Repayment To calculate the new total repayment amount after making the additional payment, we subtract the additional payment from the remaining loan balance.
Remaining Loan Balance = Total Repayment Amount  Sum of Monthly Installments for Remaining Term
Remaining Loan Balance = $11,200  ($311.11 * 36) = $11,200  $11,199.96 = $0.04
New Total Repayment Amount = Remaining Loan Balance + Total Interest for Remaining Term
Total Interest for Remaining Term = Remaining Loan Balance * Interest Rate * (Remaining Loan Term / 12)
Total Interest for Remaining Term = $0.04 * 0.06 * (3 / 12) = $0.01
New Total Repayment Amount = $0.04 + $0.01 = $0.05
Step 3: Calculate the Savings To calculate the savings, we subtract the new total repayment amount from the original total repayment amount.
Savings = Total Repayment Amount  New Total Repayment Amount
Savings = $11,200  $0.05 = $11,199.95
Therefore, by making an additional payment of $2,000, you would save approximately $11,199.95 on your loan repayment.
Please note that this example assumes a simple interest model without considering any prepayment penalties or fees that may be associated with early repayment. Additionally, the values used in this example are for illustrative purposes and may not reflect actual interest rates or loan terms.