How prepayment 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.
This assumes your gold loan is repaid in equal monthly instalments. If yours is interest only or due in one payment at the end, part payments still cut the interest, but the savings will differ from these figures.
Worked example
On £3,000 at 12% with 12 months left, the normal payment is £266.55 a month and the interest would be £198.56. Paying £50 a month extra saves £30.98 and clears the loan 1 month sooner.
Paying £100 a month extra instead saves £52.58 and 3 months. A one-off £1,000 lump sum now saves £108.99 and 4 months.
Getting your gold back
Your gold is returned once the loan is fully repaid. Ask your lender for a closing figure, and check for any prepayment or closing charges before you pay.
Inputs for the gold loan prepayment calculator
Gold loan balance
The amount left to repay on your gold loan.
Interest rate (per year)
Your current interest rate.
Time left to repay
How many months 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
Gold loan prepayment calculator questions
Can I prepay a gold loan?
Usually. Ask your lender how part payments are applied and whether there's a charge.
How much would £50 a month extra save?
On £3,000 at 12% with 12 months left, £30.98 and 1 month.
When do I get my gold back?
Once the loan is fully repaid.
Will my lender charge me for overpaying?
It depends on your agreement. Check for early repayment or settlement charges before you overpay.