Loan Early Repayment Calculator

Loan Early Repayment Calculator Guide

What is Early Repayment?

Early repayment refers to the act of repaying part or all of the loan principal before the agreed repayment period in the loan contract. Early repayment can reduce future interest payments, but may incur certain fees.

Two Strategies for Early Repayment

Shorten the loan term: Keep the monthly payment amount unchanged, reduce the number of payment periods
Reduce the monthly payment amount: Keep the repayment period unchanged, reduce the monthly payment amount

This calculator adopts the second strategy, which is to reduce the monthly payment amount while keeping the repayment period unchanged.

Early Repayment vs. Investment

Early repayment is not always the best choice. If you have other investment channels and the investment return rate is higher than the loan interest rate, investing the funds may be more profitable than early repayment.

This calculator can help you compare:

Interest saved through early repayment
Potential returns from investing the saved monthly payments

Calculator Parameter Description

Current Loan Amount: The total remaining loan principal
Annual Rate: The annual interest rate of the loan
Remaining Term: The remaining number of payment months
Payment Method: Equal payment or equal principal
Early Repayment Amount: The principal amount planned to be repaid in advance at once
Early Repayment Fee: The fee charged by the bank for early repayment
Investment Annual Rate: The expected annual return rate for investing the monthly savings

Result Interpretation

Total Payment Before: The total amount to be paid in the future without early repayment
Total Payment After: The total amount to be paid in the future after early repayment (including early repayment amount and fees)
Interest Saved: The total interest saved through early repayment
Investment Balance: The total amount when investing the monthly savings until the end of the loan
Investment Interest: The investment return (excluding principal)
Total Benefit: The sum of interest saved and investment return
One-time Investment Return: The potential return if the early repayment amount is directly invested until the end of the loan

Notes

The results of this calculator are for reference only, and the actual situation may vary due to bank policies, interest rate changes, and other factors
Investment returns are calculated based on a fixed return rate, actual investments may face risks and uncertain returns
Before early repayment, it is recommended to consult the bank to understand the specific early repayment policy and fees
The calculation results are based on absolute self-discipline, meaning consistent fixed investments without diverting funds for other purposes