Personal Loan Early Repayment and Settlement Fees
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Early payoff cost equals the cash already paid plus the lender’s dated settlement amount, not simply the current statement balance. Contract rules, accrued interest, notice, rebates, and fees can change the figure.
Define the payoff date and payment order
The calculator assumes the regular payment posts first in the selected month and settlement follows immediately. A lender may quote a different date, accrue interest daily, or require notice. One month label can therefore differ from a real settlement statement.
Calculate the remaining principal
For a monthly reducing-balance estimate, each month posts interest, applies the loan payment, and carries the closing principal forward. The selected month’s closing balance is the starting point for the modeled settlement fee.
Translate the contract fee carefully
- None entered: remaining balance only.
- Flat: one currency amount.
- Percent of balance: a percentage of remaining principal.
- Months of interest: current modeled monthly interest multiplied by the entered months.
Do not choose the method that “looks typical.” Use the written contract or dated quote.
Compare both offers at the same month
Full-term cost can favor the low-rate, high-fee offer while an early month favors the no-fee offer. Compare total outflow through settlement, not only remaining balance. A sunk origination fee is still part of the borrower’s cost even if it is not charged again.
Ask for a dated settlement or payout statement
MoneyHelper and FCAC both direct borrowers to check early-repayment terms. Request the amount, valid-through date, payment instructions, and how pending debits or refunds are handled. Keep confirmation after the account is closed.
Use the right tool for the goal
Use the Personal Loan True Cost & Offer Comparison Calculator to compare one settlement horizon across two offers. Use the Amortization Calculator for repeated extra payments and a full revised schedule.
Frequently asked questions
Does early repayment always save interest?
It can reduce future interest, but an early-repayment fee and already-paid upfront fees reduce the saving.
Is the remaining balance the settlement amount?
Not always. Accrued interest, fees, rebates, and timing can change the lender’s dated figure.
Does CalculatorGeek recommend a lender?
No. The tool and guides compare terms supplied by the user. They do not rank providers, quote live rates, predict approval, or sell a lead.
Are the USD, GBP, CAD, and AUD modes different legal calculators?
No. They change currency formatting and terminology context only; they do not insert jurisdictional rules or market rates.
Sources and review status
- Financial Consumer Agency of Canada — Personal loans
- Financial Consumer Agency of Canada — Before borrowing money
- MoneyHelper — Personal loans
- ASIC Moneysmart — Personal loans
- ASIC Moneysmart — Personal loan calculator
- CFPB — Interest rate versus APR
Sources and model boundaries were checked on 2026-10-07. CalculatorGeek Editorial Team reviewed and approved the full finance and insurance package on 2026-10-08. The cited organizations supplied source material; they did not review or endorse this CalculatorGeek package. Product terms, policy forms, laws, regulatory guidance and rates can change; current written documents and applicable authorities control.
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