Loan Overpayment Calculator
See how much interest and time you could save by overpaying your loan each month.
New repayment period
3 yr 11 mo
- Interest saved
- £518.18
- Time saved
- 1 yr 1 mo
- Normal monthly payment
- £202.76
- New monthly payment
- £252.76
Estimates only. Assumes a fixed rate with no early repayment charges.
v1.0 · Reviewed September 2026
How this is worked out
Same method as for a mortgage: the scheduled payment comes from the balance, rate and term, then the balance is run forward with the overpayment added and the two paths compared.
Worked example
- Balance £10,000
- Rate 8%
- 5 years left
- £50 a month extra
normal payment £202.76, paying £252.76 instead
Clears in 3 yr 11 mo, saving £518.18 of interest
Assumptions and limits
- Assumes a fixed rate and interest charged on the reducing balance.
- Many personal loans use a fixed total interest charge set at the start, so an early settlement figure is calculated under the Consumer Credit Act rather than by this method. Ask your lender for a settlement quote.
- Early repayment charges, typically up to about two months of interest, are not included.