Loan Prepayment Penalty Calculator

Enter your balance and penalty rate to estimate the early payoff cost.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

The loan prepayment penalty calculator estimates the fee a lender charges for paying off a loan before its scheduled term, most commonly structured as a flat percentage of the outstanding principal balance at the time of payoff (for example, 2% of the remaining balance), though some loans instead charge a set number of months of interest.

Lenders add prepayment penalties to recoup the interest income they lose when a loan is closed early, and they show up most often on mortgages, auto loans, and some personal or commercial loans, usually only within the first few years of the term. Borrowers refinancing a mortgage, selling a financed car early, or considering an early loan payoff use this calculator to check whether the penalty erases the interest savings from paying early — the loan agreement or amortization schedule shows the exact penalty terms and any expiration date.

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