Early Loan Repayment Calculator
Paying even a little extra toward a loan each month attacks the principal directly — which means every later month charges less interest. The calculator compares your loan with and without extra payments and shows the interest and years you save.
Your right to repay early in the EU
Under the EU Consumer Credit Directive, you can repay a consumer loan early at any time, and the lender must reduce the total cost accordingly. Compensation to the lender is capped at a small percentage of the amount repaid (and often zero in practice). Mortgages vary more by country and by rate type — variable-rate mortgages can usually be repaid flexibly, while breaking a long fixed rate may carry a fee. Check your contract, but don't assume early repayment is penalised: usually it isn't.
Repay the loan or invest the money?
Extra repayment is a guaranteed, tax-free "return" equal to your loan's interest rate. The higher the rate, the stronger the case: clearing 10%+ consumer credit beats any realistic investment, while with a cheap mortgage many people prefer investing the difference — see what the same monthly amount could do in the compound interest calculator. A common middle path: kill expensive debt first, keep the emergency fund intact, then split extra cash between the mortgage and investing.
Frequently asked questions
Is it better to pay a lump sum or raise the monthly payment?
Euro for euro, a lump sum today saves slightly more than the same total spread over future months, because it stops interest immediately. In practice the sustainable habit usually wins: a permanent €200/month extra quietly removes years from a mortgage, while lump sums depend on windfalls. The calculator accepts both — try each and compare.
Should I keep my emergency fund instead of repaying?
Yes. Money paid into a loan is gone from your reach (few loans let you withdraw it back), so never repay yourself into a position where a broken car pushes you toward expensive credit. Buffer first, then extra repayments.