How a lump sum helps
A lump sum reduces your balance straight away, so every later payment pays off more capital and less interest. 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.
Some lenders lower your monthly payment instead of shortening the loan after a part repayment; this calculator shows the effect of keeping the payment the same.
Worked example
On £12,000 at 9% with 4 years left, the normal payment is £298.62 a month. A £2,000 lump sum now saves £774.70 in interest and clears the loan 9 months sooner.
A £1,000 lump sum saves £411.32 and 4 months. A £4,000 lump sum saves £1,369.61 and 1 year 5 months.
Early repayment charges
Many personal loans allow part repayments, but the lender may charge a fee. Ask for a settlement or part-repayment figure before you pay.
Inputs for the lump sum repayment calculator personal loan
Amount you owe
The balance left on your personal 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
Personal loan lump sum repayment calculator questions
Can I pay a lump sum off my personal loan?
Usually. Ask your lender how they apply a part repayment and whether there's a charge.
How much would a £2,000 lump sum save?
On £12,000 at 9% with 4 years left, £774.70 and 9 months.
Will a lump sum lower my payment or shorten my loan?
It depends on your lender. This calculator shows the loan shortening with the same payment.
Will my lender charge me for overpaying?
It depends on your agreement. Check for early repayment or settlement charges before you overpay.