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# Loan Early Repayment Calculator

The Loan Early Repayment Calculator allows you to review your expenditure on a loan and understand how much you could save in interest payment by increasing the amount you pay on your loan each month.

 Current Loan Balance: Annual Interest Rate: % Current Monthly Repayment: Additional Monthly Repayment:
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## Loan Early Repayment Analysis

Based on the figures entered into the Loan early Repayment Calculator:

• If you continue to make monthly payment of you will repay your loan months quicker than if you just paid the standard monthly installment of
• You will reduce the total amount of interest paid on the loan, reducing from to which is a saving of in interest payments

## Make the Best Decisions with the Early Repayment Loan Calculator

The Early Repayment Loan Calculators is helpful for managing all kinds of loan repayments be it a personal loan, a car loan or a home loan. It's natural for a borrower to be concerned about paying back the loan as the repayment involves both the principal amount as well as the interest. Interest is the extra amount of money paid for using the lender's money. Your lender could be a bank or any non banking financial institution, a private lender or a friend, in all cases it is important to understand how the interest is being charged on your loan so you can easily manage early repayments.

The repayments that you will make on any loan consists of two parts. The first that reduces the balance in order to pay off the loan and the other part covers the interest on the loan. There are certain factors or rather certain key terms that affect the amount of interest to be paid off, let's learn about them first.

### Factors that determine how much interest you will have to pay:

Principal: This is the amount you are going to borrow (or have already borrowed).

Loan Term: This is the duration in which the loan amount, including interest, has to be paid back. Depending on the budgeting style, it can be weekly, monthly, fortnightly or yearly.

Repayment Amount: For a borrower, it is always good to be aware of the calculations of the amount that will go into repayments. This is because a certain amount goes in paying off the interest first and then the repayment of the principal starts. Again the interest amount is calculated on the principal you are going to borrow.

Rate of interest: The actual amount to be repaid largely depends on the rate of interest. The breakdown of your monthly interest payments are affected by how high or low your annual rate of interest is.

### How to pay off a loan faster?

Everyone wants to be debt-free as soon as possible and if we follow certain steps, we can pay off our debt loans much faster.

• Round off the payments: Rounding off the payments is a very good way to pay extra without even missing the funds. If the budget permits, adding an extra amount always helps in saving interest money as well as shortening the loan term.
• Making Bi-weekly payments: You can submit half the payments to the lender every two weeks rather than making the regular monthly payment. Three things will happen due to this practice. There will be less accumulation of interest because the payments get applied more often. You will also make extra payments. Practising making bi-weekly payments could reduce several months.
• Finding extra money: This can be done by engaging in two habits. Firstly, never engage in buying things which are not necessary. Secondly, never buy anything out of impulse. This will always result in you saving a lot of money to pay off your loan early.
• Refinance the loan: This is a very easy way to lower the payment, pay the loan back in a much less time and save interest. Many local financial institutions offer very low interest rates. You can take advantage of these low interest rates to refinance the loans.
• Take advantage of paperless statements: In some cases, additional discounts are offered when you opt for auto payments and paperless statements.

### Benefits of paying off loan early

The moral of the story is that paying off a loan or any kind of debt early is always a great way of saving the amount of money paid in interest as well as decreasing the overall loan term. This extra money can be used to meet other imminent or long-term needs. There are many benefits of paying off loans early. The most beneficial of them is less risk and less stress.

### Why use the Early Loan Repayment Calculator?

The early loan repayment calculator will help you to calculate the monthly interest repayments and compare how alterations to the loan payments can reduce the overall cost of the loan. With this calculator, you can also compare the loan repayments over different periods of time and opt for the most affordable option. The early repayment loan calculator provides interest repayment options over a variety of time periods starting from 1 year to 10 years. You can also compare them to monthly repayment periods of your choice.

It's quite easy to use, you just need to input the current loan balance, annual interest rate, current monthly repayment and additional monthly repayment and the calculator will automatically show you the minimum and increased monthly payments itself. You can instantly learn about the interest paid, number of payments, etc. Using a calculator will help you discover various options and make informed financial decisions.

Whatever be your option of loan repayment, you should always make sure that you are capable of affording them. Remember, the best loan is the one which can be repaid quickly.