No early repayment
- Monthly payment
- —
- Remaining term
- —
- Remaining interest
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- Estimated completion
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Early repayment calculator
Compare the savings from making an early repayment on a loan or mortgage by reducing the payment or shortening the term.
Compare both strategies
The simulation applies the lump sum now and compares the original schedule with reducing the payment or shortening the term.
Reduce payment
- Monthly payment
- —
- Remaining term
- —
- Remaining interest
- —
- Interest saved
- —
- Estimated net saving
- —
- Estimated completion
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Reduce term
- Monthly payment
- —
- Remaining term
- —
- Remaining interest
- —
- Interest saved
- —
- Estimated net saving
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- Estimated completion
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| Schedule scenario | Monthly payment | Remaining term | Remaining interest | Fee cost | Estimated net saving |
|---|---|---|---|---|---|
| No early repayment | — | — | — | — | — |
| Reduce payment | — | — | — | — | — |
| Reduce term | — | — | — | — | — |
Outstanding principal before and after
Each line shows the estimated balance after every payment. The lump sum is applied at the starting point.
Compared amortisation schedule
Choose a scenario to review payment, interest, principal and balance month by month.
| Month | Date | Payment | Principal | Interest | Balance |
|---|
The lump sum repays the full outstanding balance.
How the early repayment is calculated
The current constant-payment schedule is rebuilt from outstanding principal, nominal annual rate and months remaining. The lump sum is then deducted and two schedules are generated.
“Reduce payment” keeps the term and recalculates a lower instalment. “Reduce term” keeps the original payment and simulates monthly payments until the new balance reaches zero; the final payment may be smaller.
The entered effective date starts the schedule and determines estimated completion dates.
The fee combines percentage and fixed amounts; when a cap is entered, the lower amount applies.
Advanced options provide a closer representation of the contract; keep their defaults when they do not apply.
Formula and approach
The constant payment is C = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1). At zero interest, C = P / n. The fee equals lump sum × percentage / 100 and reduces net saving, not gross interest saving. Applied fee = min(percentage × repayment + fixed fee, cap) when the cap is greater than zero.
Reproducible example
With €150,000 outstanding, a 3.25% nominal rate, 240 months remaining, a €20,000 lump sum and a 0.50% fee, the comparison separates the new payment, months removed and net saving for each strategy.
Frequently asked questions
Which normally saves more interest: payment or term?
Keeping the payment and shortening the term usually saves more interest because principal remains outstanding for less time.
Does net saving include the fee?
Yes. It is gross interest saving minus the calculated fee; other unentered costs are excluded.
Can I use it for a variable-rate mortgage?
Yes as a scenario, but the current rate is held constant. Repeat with higher and lower rates.
What if I repay the full balance?
Both strategies repay the debt immediately. Add any accrued interest and separate closure costs yourself.
Why might the lender quote differ?
Exact payment dates, rounding, irregular periods and contractual terms can differ from this monthly estimate.