How do I work out the redemption penalty charge?

Legacy_user

I'm looking at taking out a loan for around £9000 at an APR of 7.9% and have been told, if I pay it off early, there is a 1 months' interest charge on the outstanding balance. As there may be a possibility of paying it off early, I wondered how you could work out the charge. Can anyone help me with a simple formula you can use to work it out? Thanks.:T

CLAPTON

lets say you owe currently 9000 and your interst rate is 7.9%
so a month's interest is 9000 x 7.9% /12 approximately £60
However in practice it depends upon exactly when you ask for a settlement figure in relation to when you pay your monthly payment.