Repayment Calculator Standard Repayment Extra Payments Interest-Only Refinance vs. Overpay ...
Repayment Calculator
Standard Repayment
Loan Amount (£)
Interest Rate (%)
Loan Term (Years)
Payment Frequency
Extra Payments
Loan Amount (£)
Interest Rate (%)
Loan Term (Years)
Extra Monthly Payment (£)
Lump Sum Payment (£)
Interest-Only
Loan Amount (£)
Interest Rate (%)
Interest-Only Period (Years)
Remaining Term (Years)
Payment Frequency
Refinance vs. Overpay
Current Loan Balance (£)
Current Interest Rate (%)
Remaining Term (Years)
New Interest Rate (%)
New Loan Term (Years)
Extra Monthly Payment (£)
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Results
Loan Breakdown
Understanding Loan Repayment Strategies
Loan repayment strategies can significantly impact your total interest costs, monthly cash flow, and overall financial flexibility. Choosing the right approach depends on your current financial situation, future goals, and risk tolerance.
Standard repayment offers predictable monthly payments over a fixed term, making it the most straightforward option for budgeting. Extra payments can dramatically reduce your interest costs and shorten your loan term, providing substantial long-term savings.
Interest-only loans provide lower initial payments but result in higher total costs and payment shock when the repayment period begins. Refinance vs. overpay analysis helps you decide whether to secure a lower interest rate through refinancing or accelerate your current loan payoff through additional payments.
Use these calculators to compare different repayment strategies and make informed decisions that align with your financial objectives.
Frequently Asked Questions
A: Bi-weekly payments mean you pay half your monthly payment every two weeks, which results in 26 half-payments (13 full monthly payments) per year instead of 12. This extra payment each year can significantly reduce your loan term and total interest paid.
A: Extra payments are almost always beneficial as they reduce your principal balance, which decreases future interest charges. However, check for prepayment penalties on your loan, and consider whether you might get a better return by investing the extra money elsewhere, especially if you have high-interest debt or can earn more than your loan's interest rate.
A: Interest-only loans can be appropriate for short-term situations like when you expect a significant increase in income, are selling another property, or need temporary cash flow relief. However, they're risky for long-term borrowing because you're not building equity, and the payment shock when the repayment period begins can be substantial.
A: Refinancing makes sense when you can secure a significantly lower interest rate that offsets closing costs, or when you need to lower your monthly payment. Extra payments are better when you want to avoid refinancing fees, have a relatively short remaining loan term, or want the flexibility to skip extra payments if needed.
A: Both reduce your principal and save interest, but regular extra payments provide consistent progress and budgeting predictability. Lump sum payments are great for windfalls like bonuses or tax refunds, but don't provide the same psychological benefit of regular debt reduction momentum.
A: Most loans don't require extra payments to be consistent—you can pay more when you can and stick to your regular payment when you can't. The key is making your required minimum payment consistently to avoid late fees and credit damage.
A: These calculations use standard loan amortization formulas and are mathematically accurate. However, actual loan terms may include fees, different compounding methods, or specific lender policies that could affect your exact payments. Always confirm details with your lender before making financial decisions.