Loan Early Repayment Calculator

Yes. Under the Consumer Credit Act you have the right to repay a regulated personal loan early, in full or in part, at any time. Tell your lender you want to make an overpayment or settle, and they must give you an early settlement figure. Some lenders charge a fee for this — check your agreement first.

Some do. On regulated consumer credit loans the charge is capped — typically up to around one to two months’ interest (up to 58 days) on the amount you repay early. Many lenders charge nothing at all for monthly overpayments. Check your loan agreement or ask your lender before overpaying, so a fee doesn’t eat into the interest you save.

It depends on the balance, APR and how much extra you pay. As a guide, adding £100 a month to a £10,000 loan at 7.9% APR over 5 years clears it almost two years sooner and saves roughly £800 of interest. Enter your own figures above to see the exact saving and the new payoff date.

On most UK personal loans, overpayments shorten the term — your contractual monthly payment stays the same and the loan simply ends sooner, which is what this calculator models. A few lenders instead recalculate a lower monthly payment over the same term, which saves less interest. Ask your lender which way they apply overpayments.

Compare rates: if your loan APR is higher than the interest your savings would earn (it usually is), overpaying wins. Two exceptions — keep an emergency fund first, so an unexpected bill doesn’t force you into more expensive borrowing, and always cover priority debts (rent, council tax, energy) before overpaying a personal loan.

Yes — this is a partial early settlement, and lenders must accept it on regulated loans. A lump sum works like a large single overpayment: it cuts the balance immediately, so less interest accrues from that point on. To approximate a lump sum in this calculator, reduce the loan amount by the lump sum and compare the results.