working out interest

Doglover88

i took out a 25k loan a yr ago, over 7yrs at 7.9% and presently have £22,500ish remaining on it. Is there a way of working out how much interest I'd save if i was to pay off £15k now as opposed to letting it run its course? The interest is worked out daily
Many thanks in advance

Magentasue

Try https://www.whatsthecost.com and look at the calculators. HTH

grumbler

[font=ARIAL, HELVETICA]http://www.finaid.org/calculators/loanpayments.phtml:[/font]

[font=ARIAL, HELVETICA]Loan Balance: [/font][font=ARIAL, HELVETICA]$22,500.00 [/font]
[font=ARIAL, HELVETICA]Loan Interest Rate: [/font][font=ARIAL, HELVETICA]7.90%[/font]
[font=ARIAL, HELVETICA]Loan Term: [/font][font=ARIAL, HELVETICA]6 years[/font]
[font=ARIAL, HELVETICA]Minimum Payment: [/font][font=ARIAL, HELVETICA]$0.00 [/font][font=ARIAL, HELVETICA]
[/font][font=ARIAL, HELVETICA]Monthly Loan Payment:[/font][font=ARIAL, HELVETICA]$393.40 [/font]
[font=ARIAL, HELVETICA]Number of Payments: [/font][font=ARIAL, HELVETICA]72[/font][font=ARIAL, HELVETICA]
[/font][font=ARIAL, HELVETICA]Cumulative Payments: [/font][font=ARIAL, HELVETICA]$28,324.82 [/font]
[font=ARIAL, HELVETICA]Total Interest Paid: [/font][font=ARIAL, HELVETICA]$5,824.82[/font]


[font=ARIAL, HELVETICA]If you pay £15000 and keep on paying the same £393.40 p.m.:[/font]

[font=ARIAL, HELVETICA][font=ARIAL, HELVETICA]Loan Balance: [font=ARIAL, HELVETICA]$7,500.00 [/font][/font][/font]
[font=ARIAL, HELVETICA][font=ARIAL, HELVETICA]Loan Interest Rate: [font=ARIAL, HELVETICA]7.90%[/font][/font][/font]
[font=ARIAL, HELVETICA][font=ARIAL, HELVETICA]Loan Term: [font=ARIAL, HELVETICA]1.8 years[/font][/font][/font]
[font=ARIAL, HELVETICA][font=ARIAL, HELVETICA]Minimum Payment: [font=ARIAL, HELVETICA]$393.40 [/font][font=ARIAL, HELVETICA]
[/font][font=ARIAL, HELVETICA]Monthly Loan Payment:[/font][font=ARIAL, HELVETICA]$393.40 [/font]
[font=ARIAL, HELVETICA]Number of Payments: [/font][font=ARIAL, HELVETICA]21[/font][font=ARIAL, HELVETICA]
[/font][font=ARIAL, HELVETICA]Cumulative Payments: [/font][font=ARIAL, HELVETICA]$8,040.83 [/font]
[font=ARIAL, HELVETICA]Total Interest Paid: [/font][font=ARIAL, HELVETICA]$540.83 [/font]


You save about £5825 - £541=£5284


If you pay £15000 and pay the remainer over the same 6 years:


[font=ARIAL, HELVETICA]Loan Balance: [/font][font=ARIAL, HELVETICA]$7,500.00[/font]
[font=ARIAL, HELVETICA]Loan Interest Rate: [/font][font=ARIAL, HELVETICA]7.90%[/font]
[font=ARIAL, HELVETICA]Loan Term: [/font][font=ARIAL, HELVETICA]6 years[/font]
[font=ARIAL, HELVETICA]Minimum Payment: [/font][font=ARIAL, HELVETICA]$0.00 [/font][font=ARIAL, HELVETICA]
[/font][font=ARIAL, HELVETICA]Monthly Loan Payment:[/font][font=ARIAL, HELVETICA]$131.13 [/font]
[font=ARIAL, HELVETICA]Number of Payments: [/font][font=ARIAL, HELVETICA]72[/font][font=ARIAL, HELVETICA]
[/font][font=ARIAL, HELVETICA]Cumulative Payments: [/font][font=ARIAL, HELVETICA]$9,441.67 [/font]
[font=ARIAL, HELVETICA]Total Interest Paid: [/font][font=ARIAL, HELVETICA]$1,941.67[/font]

You save about £3883

P.S. Check with your loan provider: they can charge you for early repayment ...[/font][/font]

Doglover88

cheers people, grumbler you are a star!!

matthew6476

Also check my post about how to avoid early repayment fees on loans

Matthew