How loan overpayments work
The calculator keeps your normal monthly payment the same and adds your overpayments, so the loan is paid off sooner. It works month by month, charging interest at one twelfth of the annual rate on what you still owe.
Worked example
On £10,000 at 7% with 5 years left, paying £50 a month extra saves £446.86 in interest and clears the loan 1 year 1 month early.
Early repayment charges
For most consumer loans in the UK, you have a right to repay early, but the lender can charge limited compensation. Check your agreement before overpaying.
Inputs for the loan overpayment calculator
Amount you owe
The balance left on your loan.
Interest rate (per year)
Your current interest rate.
Time left to repay
How many years are left on the loan.
Extra each month
The amount you'll pay on top of your normal payment each month. Enter 0 for none.
One-off lump sum now
A single overpayment made now. Enter 0 for none.
CALCULATOR QUESTIONS
Loan overpayment calculator questions
Does overpaying a loan save money?
Yes, by reducing the balance that interest is charged on.
How much would £50 a month extra save?
On £10,000 at 7% with 5 years left, £446.86 and 1 year 1 month.
Can I overpay any loan?
Most consumer loans allow early repayment, sometimes with a limited charge.
Will my lender charge me for overpaying?
It depends on your agreement. Check for early repayment or settlement charges before you overpay.