Result
Result after the early repayment
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
The balance at the time of the early repayment is computed with a closed-form annuity formula, not a month-by-month loop: B(t) = loan amount × ((1+monthly rate)^term − (1+monthly rate)^t) ÷ ((1+monthly rate)^term − 1). The early repayment amount is subtracted from that balance to get the new balance.
With 'shorten the term' selected, the monthly payment stays the same and the new term is found with the same formula as the loan term from a given payment calculator: the loan simply reaches a zero balance sooner. With 'lower the payment' selected, the term stays as originally planned, and the new payment is recomputed with the annuity formula for the new (smaller) balance over the remaining term.
Shortening the term at the same payment almost always saves more on interest than lowering the payment at the same term — because in the second case the money stays borrowed longer and keeps accruing interest. To see the savings in money directly, use the separate early repayment savings calculator.