Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

    • gord115
    • By gord115 13th Jan 18, 2:14 PM
    • 859Posts
    • 232Thanks
    How much will i save paying off loan? Help needed.
    • #1
    • 13th Jan 18, 2:14 PM
    How much will i save paying off loan? Help needed. 13th Jan 18 at 2:14 PM
    I have a TSB loan at 2.9% apr for 11000 and have made 7 payments of 318.97
    I have 29 payments to make(318.97 x 29=9250.13)

    I have a settlement figure of 8979.43 thus saving me 270.70

    I now have the money to pay this off.

    The money is in my Santander 123 account earning 1.5% interest.

    I know it will save my money paying it off(especially as I will leave the 318.97 I have gained every month untouched) but by how much?

    Help much appreciated.
Page 1
    • Tom99
    • By Tom99 13th Jan 18, 3:23 PM
    • 2,240 Posts
    • 1,520 Thanks
    • #2
    • 13th Jan 18, 3:23 PM
    • #2
    • 13th Jan 18, 3:23 PM
    2.9% less 1.5% = 1.4% diff

    You are paying off 8,979 2.42 years early.

    If you assume the balance over those 2.42 years would be half the current balance then the amount you are saving is:

    (8,979/2)*1.4%*2.42yrs = 152

    Alternatively you could say the saving of 270.70 represents interest at 2.9% which you are replacing with funds costing you 1.5% so:

    270.70/2.9*1.4= 131
    • gord115
    • By gord115 14th Jan 18, 1:30 PM
    • 859 Posts
    • 232 Thanks
    • #3
    • 14th Jan 18, 1:30 PM
    • #3
    • 14th Jan 18, 1:30 PM
    Thanks Tom, that's around the figure I came up with but wasn't sure.

    Much appreciated.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

169Posts Today

1,427Users online

Martin's Twitter