Loan Prepayment Calculator
Calculate the impact of prepayments on your loan term and interest
Enter the original loan amount in your currency
Enter the annual interest rate, e.g.: 4.2
Enter the total loan term in years, e.g.: 30
Enter the amount you plan to prepay
Enter the number of months already paid
Choose the repayment method after prepayment
Prepayment Calculation Results
About Loan Prepayment
Loan prepayment refers to paying off part or all of the loan principal before the scheduled repayment period. By prepaying, you can reduce interest expenses, shorten the repayment period, or lower your monthly payment burden.
Prepayment Methods
- Reduce Loan Term: Keep the same monthly payment but reduce the loan term
- Reduce Monthly Payment: Keep the same loan term but reduce the monthly payment
Benefits of Prepayment
- Save interest: Paying off part or all of the loan early can significantly reduce future interest payments
- Shorten loan term: You can pay off the loan earlier and achieve financial freedom sooner
- Reduce financial pressure: Choosing to reduce monthly payments can lower your monthly financial burden and increase cash flow flexibility
Considerations
Before making a prepayment, consider whether there are prepayment penalties and whether the prepayment funds could be better invested elsewhere. In some cases, investing in higher-return opportunities might be more beneficial than prepaying a loan.
Disclaimer: The results provided by this calculator are for reference only. Please consult your bank for the final calculation. Different banks may have different prepayment policies.
