How loan tenure is determined
Your loan tenure is mathematically governed by your principal, interest rate, and payment size. Paying even £25 or £50 above the minimum payment shortens the tenure dramatically by accelerating principal retirement.
Worked example
Borrowing £25,000 at 8.5% interest with a monthly payment of £320 requires 114 months (9.5 years) to clear in full.
Increasing your payment to £375 per month cuts the tenure to 89 months (7.4 years), saving over two years of payments and £2,400 in interest.
Inputs for the loan tenure calculator
01
Loan principal
The starting amount borrowed.
02
Interest rate
The annual percentage rate on your loan.
03
Monthly payment
Your regular monthly instalment.
CALCULATOR QUESTIONS
Education loan tenure calculator questions
What happens if my payment is less than the monthly interest?
If your payment does not cover monthly interest, negative amortization occurs and the balance will grow rather than shrink.