Early Repayment Calculator
Repayment Savings
Total Interest Saved
New Payoff Time
Original Payoff
What is an Early Repayment Calculator?
This tool shows you how much interest you can save by adding a small additional payment to your mortgage or loan each month. Because interest is calculated on your outstanding balance, reducing that balance faster through extra payments creates a compounding savings effect that can shorten your loan term by years.
The Mathematics Behind Extra Payments
When you add an extra payment on top of your regular monthly obligation, that additional amount goes entirely toward reducing your principal balance. A lower principal in the following month means less interest is charged. This cycle accelerates, and the time saved grows exponentially with the size of your extra payment.
Frequently Asked Questions
Are there penalties for early repayment?
Some mortgages include a prepayment penalty clause, especially fixed-rate products from certain lenders. Always review your loan agreement carefully before making lump-sum or additional payments to avoid unexpected fees.