Early Loan Settlement Calculator
Estimate what it would cost to pay off a loan early: the outstanding balance, any early repayment charge you enter, and the interest you would save.
Your loan
From your agreement or lender. Zero if none.
Your estimate
Balance outstanding
£6,449.04
Settlement figure
£6,449.04
Including your charge
Interest avoided
£786.34
36 payments left
Net saving
£786.34
After any charge
Only your lender can give an official settlement figure. Ask for one in writing before you pay.
Paying off a loan early
Clearing a loan early can save interest, but some lenders charge an early repayment fee. The saving is only worth having if it outweighs any charge, and if paying the lump sum does not leave you short of cash.
Always ask your lender for a settlement figure, because it is the only number that counts.
Before you settle
Keep an emergency fund, and think twice about using savings to repay a very low-interest loan. If you are paying off one debt by taking another, compare the total costs first.
How to use this calculator
- Enter the original loan amount, APR and total term in months.
- Enter how many monthly payments you have already made.
- Enter any early repayment charge from your agreement, in pounds. Leave it at zero if there is none.
How it is calculated
The loan is rebuilt month by month. The outstanding balance is what remains after the payments you have made.
Interest saved is the interest in the payments you would no longer make. The net saving is that amount less any charge.
Worked example
On a £10,000 loan at 7.9% APR over 60 months, after 24 payments the outstanding balance is £6,449.04. Settling then avoids about £786.34 of interest over the remaining 36 payments, before any early repayment charge.
Assumptions and limits
- Only your lender can give you an official settlement figure. Request one in writing before paying.
- Charges and rebates vary by agreement and the law that applies to it. Enter the charge your lender quotes.
- Assumes fixed monthly payments and no missed or late payments.
Common questions
How do I get an official settlement figure?
Ask your lender. They will give you a figure valid for a set date, including any charge.
What is an early repayment charge?
A fee some lenders charge when you repay before the end of the term. Your agreement and your lender can tell you whether one applies and how it is worked out.
Why is the saving not the whole remaining interest?
The saving shown is the interest in the remaining scheduled payments, less any charge you entered. A lender’s own method may differ slightly.
Does early settlement affect my credit file?
Paying a loan off is generally positive, but a closed account can change your credit mix. It does not usually harm your score on its own.
Related guides
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- Debt Consolidation CalculatorCompare your current debts with one consolidation loan, including fees.
- Balance Transfer CalculatorIs a balance transfer worth it? Compare the total cost, including the fee.
These calculators give estimates based on the figures you enter and the assumptions listed above. They are not financial advice. Your numbers are worked out in your browser and are not sent to us.
This page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised debt adviser before making important decisions about your money.