Personal Loan Settlement Figure

hcase

Hi, apologies if this has been asked before, I wasn't sure what to search for on the forums.

I'm thinking about taking out a personal loan to help renovate a property, the idea being that I'll settle the loan in full sooner rather than later, my question is what should I expect the settlement figure to look like after one year?

Some example figures for reference:
Loan amount: £20,000 (over 96 months to keep repayments low)
Total amount payable: £28,606.07 @ 9.9% APR representative
Monthly repayment: £297.98
Early repayment penalty: 1 months interest

I'm assuming that after 12 months, having paid back £3575.76, the settlement isn't just going to be total amount minus amount paid (£25,030.31) with ~£200-300 penalty fee, so how is it calculated?

Is there any way of getting an idea? My problem is trying to work out if it's a viable investment after I take interest into account.

Obviously there's an element of risk as the property sale value is unknown, so that's a separate consideration, for now I'm just trying to get my head around the loan aspect.

Thanks!

Tixy

Easy way to come up with an decent estimate - enter the details in to an online loan calculator like this one http://money.guardian.co.uk/calculator/form/0,,603119,00.html

After 12 payments the capital outstanding will be the figure next to month 13 in the table i.e. £18274 add on that months interest (which will be the early settlement interest of £150. So a good estimate would be that you'd be paying out £18424 by paying in full after 12 months.

hcase

That's really helpful, thanks very much.