See how much you save by repaying part of a loan early: the interest and time saved, if you keep the same monthly payment.
Enter your data
Enter the outstanding balance, interest, remaining term and lump-sum prepayment. See the interest and time saved.
The calculation keeps the same monthly payment, so the loan is cleared sooner. On variable-rate loans, early repayment is free of charge in Romania.
Interest saved ≈ 44,119 RON, Time saved 3 years 7 monthsIndicative loan figures. The payment uses the annuity formula (fixed rate). The real interest and APR depend on the bank, on IRCC and on fees — the figures here are estimates. Instant in-browser calculation, no account.
By prepaying an amount and keeping the same monthly payment, the loan is cleared sooner, and the interest for the removed months is saved:
On a 200,000 balance over 20 years at 6.5%, a 20,000 prepayment shortens the loan by nearly 3 years and saves tens of thousands in interest.
The saving comes from the interest you no longer pay on the amount repaid in advance. The earlier and the more you repay, the greater the total interest saved.
The total interest of the loan without prepayment is compared with the one after reducing the balance, keeping the same monthly payment. The difference, minus the amount repaid, is the interest saved.
Reducing the term (keeping the payment) saves significantly more interest than reducing the payment (keeping the term), for the same amount repaid early.
In Romania, for consumer loans with a variable rate, early repayment is free of charge. Fixed-rate loans may have a small fee, capped by law.
It is most effective early in the loan, when the balance and the interest part of the payment are large. Toward the end, most of the payment is already principal and the saving shrinks.
Compare the loan interest with the net return of an alternative investment. If the loan rate is higher than what you would earn by investing, early repayment is usually better and risk-free.
Full repayment closes the loan; partial reduces the balance and shortens the term or payment. Choose partial to keep liquidity, but use surplus funds, not your emergency fund.
Using savings to reduce the balance lowers your total cost but also cuts your liquidity. Keep an emergency fund intact before repaying large amounts early.