Early loan repayment: lower payment or shorter term
One-off payment, savings and two new plans
- Current monthly payment
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- New monthly payment
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- New number of payments
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- Interest left after the overpayment
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Worked out in your browser. No sign-up.
This is a guide figure, not financial advice. The exact amount comes from your bank or the relevant authority.
Enter the outstanding balance, interest rate, payments left and the lump sum you want to pay off. The calculator compares two options: keep the term and lower the monthly payment, or keep the payment and finish sooner. It shows the interest left and your saving after any early repayment fee from the bank's statement.
How it works
The starting point is what you owe today. Interest already paid is left alone. For a lower payment, a new fixed payment is worked out on the balance minus your lump sum over the same number of months. For a shorter term, the old payment stays and the calculator counts the months until the debt is gone; the last payment may be smaller.
The saving is future interest before the overpayment minus future interest after it, less the fee you enter. Fees depend on the country, the contract and the type of loan, so none is filled in for you.
Worked example
You owe €100,000 at 6% with 120 payments left, so you pay €1,110.21 a month. Paying in €20,000 and keeping the term brings the payment down to €888.16 and saves €6,644.92 in interest. If the bank charges a €100 fee, the saving shown becomes €6,544.92.
Choose the shorter term instead and you keep paying €1,110.21, but the loan ends years earlier and the saving is larger.
Questions people ask
Which balance do I enter?
The outstanding principal from your latest bank statement or repayment plan, after the last payment. Adding up the remaining payments gives a bigger number because it includes future interest.
Is it better to reduce the payment or the term?
At the same rate, shortening the term almost always saves more interest because the debt is cleared faster. A lower payment gives you more breathing room each month.
How do I enter the bank's fee?
As an amount, not a percentage, in the same currency as the loan. If the bank quotes 1% of €20,000, type 200.
What if I pay off the whole loan?
Enter the full balance as the lump sum. The new payment and the interest left drop to zero, and the saving is all the future interest minus the fee.
Sources
- National Bank of Serbia: early repayment explained — checked 13.11.2026
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Updated: 13 November 2026