How paying extra works
The calculator keeps the normal payment on your balance, rate and time left, then adds your extra payments each month so the loan clears sooner.
This calculator is for a fixed-rate equity loan repaid in monthly instalments, secured on your home. Home equity lines of credit and shared-equity schemes work differently.
Worked example
On £40,000 at 7.5% with 10 years left, the normal payment is £474.81 a month. Paying £150 a month extra saves £5,729.95 in interest and clears the loan 3 years 1 month sooner.
Paying £300 a month extra instead saves £8,529.17 and 4 years 9 months. A one-off £5,000 lump sum now saves £4,918.70 and 1 year 8 months.
Before you overpay
Check your agreement for early repayment charges. Paying off the equity loan also frees up equity in your home.
A home equity loan is secured on your home, so check the agreement before paying off, and remember that clearing it also releases the charge.
What this calculator assumes
The calculator takes your balance and rate, works out the normal monthly payment over the time left, then replays the loan month by month with your overpayments added. Extra payments reduce the balance immediately.
It leaves out early repayment charges and any fee to release the charge on your home, so check your own terms before relying on the saving.
Inputs for the equity loan payoff calculator
Equity loan balance
The amount left to repay on your equity loan.
Interest rate (per year)
Your current interest rate.
Time left to repay
How many years are left on the loan.
Extra each month
The amount you'll pay on top of your normal payment each month. Enter 0 for none.
One-off lump sum now
A single overpayment made now. Enter 0 for none.
CALCULATOR QUESTIONS
Equity loan payoff calculator questions
Can I pay off a home equity loan early?
Usually, though some lenders charge an early repayment fee. Check your agreement.
How much would £150 a month extra save?
On £40,000 at 7.5% with 10 years left, £5,729.95 and 3 years 1 month.
Does this work for a shared-equity loan?
No. Those are often repaid as a share of your home's value, not in fixed instalments.
Will my lender charge me for overpaying?
It depends on your agreement. Check for early repayment or settlement charges before you overpay.