How overpaying saves money
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.
In the UK you have a legal right to repay a consumer loan early. The lender can charge a limited amount of compensation, usually capped at 1% of the amount repaid early (0.5% if less than a year is left), so check your agreement.
Worked example
On £7,500 at 7% with 4 years left, paying £50 a month extra saves £275.58 in interest and clears the loan 11 months sooner.
Is it worth it?
Overpaying makes most sense when the loan's rate is higher than what your savings earn, and after you've built an emergency fund.
Inputs for the personal loan overpayment calculator
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 overpayment calculator questions
Can I pay off a personal loan early?
Yes. You have a right to repay early, though the lender may charge limited compensation.
How much can the lender charge?
Usually no more than 1% of the amount repaid early, or 0.5% if less than a year is left.
How much could I save?
Enter your details above. For example, £50 a month extra on £7,500 at 7% saves £275.58.
Should I overpay or save?
Overpaying usually makes sense if the loan rate is higher than your savings rate and you have an emergency fund.