How paying extra works
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.
Private loans between people are usually less formal than bank loans. Agree any overpayments with the lender and keep a written record of what you've paid.
Worked example
On £10,000 at 5% with 5 years left, the normal payment is £188.71 a month. Paying £100 a month extra saves £500.58 in interest and clears the loan 1 year 10 months sooner.
Paying £50 a month extra instead saves £310.04 and 1 year 1 month. A one-off £1,000 lump sum now saves £268.07 and 6 months.
If the loan is interest-free
Set the rate to 0% for an interest-free loan. Paying extra won't save interest then, but it will clear the debt sooner.
Inputs for the private loan payoff calculator
Amount you owe
The balance left on your private 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
Private loan payoff calculator questions
Can I pay off a private loan early?
That's up to what you agree with the lender. Put any change in writing.
How much would £100 a month extra save?
On £10,000 at 5% with 5 years left, £500.58 and 1 year 10 months.
What if there's no interest?
Enter 0%. You'll save time but no interest.
Will the lender charge me for paying early?
It depends on what you agreed. Check the terms before you overpay.