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 land loan clears sooner.
Land and plot loans are often shorter and dearer than mortgages on a finished home, so clearing one early can save a lot. If you plan to build, clearing the land loan first may also make it easier to borrow for the build.
Worked example
On £80,000 at 8% with 15 years left, the normal payment is £764.52 a month. Paying £200 a month extra saves £20,747.00 in interest and clears the loan 4 years 10 months sooner.
Paying £400 a month extra instead saves £30,273.44 and 7 years 3 months. A one-off £10,000 lump sum now saves £19,152.96 and 3 years 2 months.
Before you overpay
Check your agreement for early repayment charges, and keep cash aside for any costs tied to the land, such as planning or access work.
What this calculator assumes
The calculator takes your land loan 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 valuation or release fees, so check your own terms before relying on the saving.
Inputs for the land loan payoff calculator
Land loan balance
The amount left to repay on your land 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
Land loan payoff calculator questions
Can I pay off a land loan early?
Usually, though some lenders charge for it. Check your agreement.
How much would £200 a month extra save?
On £80,000 at 8% with 15 years left, £20,747.00 and 4 years 10 months.
Is a lump sum or monthly extra better?
Money paid in sooner saves more interest. Try both in the calculator.
Will my lender charge me for overpaying?
It depends on your agreement. Check for early repayment or settlement charges before you overpay.