How is an early loan settlement estimate calculated?

The calculator builds a standard reducing-balance repayment schedule from the balance, APR, remaining term and payment frequency. It advances that schedule to the selected date, adds the entered settlement adjustment and compares the result with continuing the modelled payments.

Will this match my lender’s settlement figure?

Not necessarily. A lender may use daily interest, contractual payment dates, statutory rebate rules, notice or deferment periods, charges and rounding that this simplified illustration cannot reproduce. Ask the lender for a dated settlement figure before paying.

What does remaining interest avoided mean?

It is the interest that would arise after the selected settlement date if the modelled repayment schedule continued. A positive settlement charge reduces the separate net-saving figure; a rebate or credit entered as a negative adjustment increases it.

Can I enter my actual regular payment?

Yes. Leave the optional payment blank to use the calculated amortising payment, or enter the contractual amount shown on your statement. If that amount does not clear the balance within the remaining term, the calculator flags the mismatch.

Does the calculator cover mortgages or UK student loans?

No. It is designed for a standard fixed-payment consumer loan. Mortgages can have product-specific early-repayment charges, and UK income-contingent student loans do not behave like conventional amortising credit.

Repay · Calculator 20

Early Loan Settlement Calculator UK

Estimate a future settlement balance, interest avoided, any settlement adjustment and the time removed from a standard repayment schedule.

1 Enter your figures2 Review assumptions3 Explore the result

Your figures

1. Enter the remaining loan

Use the outstanding balance and APR from a recent statement. This tool models a standard reducing-balance loan, not a mortgage or income-contingent student loan.

Outstanding balanceAPRRemaining termMonthsPayment frequencyRegular payment (optional)Leave blank to use the calculated monthly payment of £298.

2. Choose the settlement point

A lender’s quote is date-specific. The model rounds the date to the nearest payment period because it does not know your contractual payment day.

Proposed settlement dateSettlement fee or adjustmentUse a negative number for a rebate or credit shown by the lender.

Your entries stay in this tab and are not sent to Money Considered. A shareable link includes only the assumptions shown in its URL.

Estimated settlement amount

£12,000At the selected date, after a £0 settlement adjustment. Ask the lender for the binding dated figure.

Remaining interest avoided£2,306

Net saving after adjustment£2,306

Time removed from schedule4 years

Continue or settle

The cash-flow comparison at your chosen date

Estimated balance then: £12,000
Modelled payments still to make: £14,306
Settlement adjustment: £0
Estimated settlement amount: £12,000

View the illustrative repayment schedule

Reducing-balance schedule using the entered assumptions
Payment	Date	Opening	Interest	Payment	Closing
1	2026-09-21	£12,000	£89	£298	£11,791
2	2026-10-22	£11,791	£87	£298	£11,580
3	2026-11-21	£11,580	£86	£298	£11,368
4	2026-12-22	£11,368	£84	£298	£11,154
5	2027-01-21	£11,154	£83	£298	£10,939
6	2027-02-21	£10,939	£81	£298	£10,722
7	2027-03-23	£10,722	£80	£298	£10,504
8	2027-04-22	£10,504	£78	£298	£10,284
9	2027-05-23	£10,284	£76	£298	£10,062
10	2027-06-22	£10,062	£75	£298	£9,838
11	2027-07-23	£9,838	£73	£298	£9,613
12	2027-08-22	£9,613	£71	£298	£9,386
13	2027-09-22	£9,386	£70	£298	£9,158
14	2027-10-22	£9,158	£68	£298	£8,928
15	2027-11-22	£8,928	£66	£298	£8,696
16	2027-12-22	£8,696	£64	£298	£8,463
17	2028-01-21	£8,463	£63	£298	£8,227
18	2028-02-21	£8,227	£61	£298	£7,990
19	2028-03-22	£7,990	£59	£298	£7,751
20	2028-04-22	£7,751	£57	£298	£7,511
21	2028-05-22	£7,511	£56	£298	£7,269
22	2028-06-22	£7,269	£54	£298	£7,024
23	2028-07-22	£7,024	£52	£298	£6,778
24	2028-08-21	£6,778	£50	£298	£6,531
25	2028-09-21	£6,531	£48	£298	£6,281
26	2028-10-21	£6,281	£47	£298	£6,030
27	2028-11-21	£6,030	£45	£298	£5,776
28	2028-12-21	£5,776	£43	£298	£5,521
29	2029-01-21	£5,521	£41	£298	£5,264
30	2029-02-20	£5,264	£39	£298	£5,005
31	2029-03-23	£5,005	£37	£298	£4,744
32	2029-04-22	£4,744	£35	£298	£4,481
33	2029-05-22	£4,481	£33	£298	£4,216
34	2029-06-22	£4,216	£31	£298	£3,950
35	2029-07-22	£3,950	£29	£298	£3,681
36	2029-08-22	£3,681	£27	£298	£3,410
37	2029-09-21	£3,410	£25	£298	£3,137
38	2029-10-22	£3,137	£23	£298	£2,862
39	2029-11-21	£2,862	£21	£298	£2,586
40	2029-12-21	£2,586	£19	£298	£2,307
41	2030-01-21	£2,307	£17	£298	£2,026
42	2030-02-20	£2,026	£15	£298	£1,743
43	2030-03-23	£1,743	£13	£298	£1,458
44	2030-04-22	£1,458	£11	£298	£1,170
45	2030-05-23	£1,170	£9	£298	£881
46	2030-06-22	£881	£7	£298	£590
47	2030-07-23	£590	£4	£298	£296
48	2030-08-22	£296	£2	£298	£0

Assumptions used

APR is divided by 12 and interest is applied before each monthly payment.
The selected date is rounded to the nearest payment period because the contractual payment day is not entered.
The optional regular payment stays constant; otherwise the calculator derives the payment that amortises the opening balance across the stated term.
No missed payments, variable rates, payment holidays, insurance, arrears, daily interest or lender-specific rebate method is modelled.

This is an educational estimate, not a settlement quote or financial advice. Your lender’s dated settlement figure and contract govern the amount required.

Early Loan Settlement Calculator UK

The cash-flow comparison at your chosen date

Related calculators

Debt Freedom

The Next £1

Mortgage Overpayment vs Invest

Guides related to this calculation

APR explained: how borrowing costs compound against you

Overpay debt or invest? How to decide

Mastering your cash flow and the buy now, pay later trap