Early loan and mortgage repayment: shorter term or lower payment
Enter the remaining balance, the rate and the extra payment – the calculator compares both options and shows how much interest you avoid with each. Amounts are in Russian roubles (₽).
Shorten the term
Same payment, the loan ends soonerLower the payment
Same term, a smaller payment- No extra payment7,017,043 ₽
- Shorten the term3,553,022 ₽
- Lower the payment6,315,338 ₽
Payment = balance × i ÷ (1 − (1 + i)^−n), i = 16 ÷ 12 ÷ 100. Now: 3,000,000 → 41,738 ₽/month. After the payment the balance is 2,700,000: the same payment clears it in 150 months, or the payment over 240 months = 37,564 ₽.
NoteThis is not financial advice: the result is an estimate from the annuity formula. Exact amounts are in the new payment schedule after you pay.
Prompt sent to the chat: «Review my payment schedule for my mortgage: remaining balance – 3,000,000 ₽, rate – 16 % per year, 240 mo left, I want to make an early payment of 300,000 ₽. According to the calculator: if I shorten the term, the loan ends in 12 years 6 mo and I save 3,464,021 ₽ in interest; if I lower the payment, it becomes 37,564 ₽ and I save 701,704 ₽. Check the calculation and explain what to choose given my safety cushion and monthly budget, and what to clarify in the contract. This is not a request for financial advice – I need the numbers explained.»
You can send a photo of the schedule to the chat on the free Starter plan too.
Review my payment scheduleWhich is better: shorten the term or lower the monthly payment
On interest alone the shorter term almost always wins: the debt closes sooner, so interest accrues for fewer months. But the choice is not only about the overpayment.
Ten equal payments
Each payment covers a month of interest and a part of the debt.
Same payment, no last ones
The biggest interest saving. It suits you if the payment is comfortable and you keep a reserve for the unexpected.
Lower payments, same term
You save less, but the budget breathes. People pick it when the payment is heavy, there is no cushion, or their income is about to change.
Refinancing a loan: when it makes sense
A lower new rate is not yet a gain. Compare the overpayment on the old and the new loan and subtract the cost of switching: fees, valuation, insurance.
The gain after costs is about 233,970 ₽. Check that the new contract has no insurance or fees you have not counted.
Payment formula: balance × i ÷ (1 − (1 + i)^−n), where i is the monthly rate (annual ÷ 12 ÷ 100) and n is the number of months.
How to apply for early repayment
The procedure is similar across lenders. Deadlines and ways to notify the lender are in your contract – check it and the current law.
- Step 1
Read the contract
How and how many days ahead to notify the lender, and whether there are fees.
- Step 2
Submit the application
In the app or at a branch: the amount, the date, and what to reduce – the term or the payment.
- Step 3
Pay in the money
Put the regular payment plus the extra amount on the account by the debit date.
- Step 4
Get the new schedule
Check the balance, the payment and the date of the last instalment.
- Step 5
Compare with the calculation
Compare it with the calculator. If they differ, bring a photo of the schedule to the chat.
Reviewing your payment schedule is free
Starter – 0 ₽
The calculator works right on the page. A question in the chat and a photo of the schedule are a text request, included in the free plan with 30 units of energy. If you have many questions, there is Lite at ₽690 (150 energy) and Basic at ₽990 (200 energy).
FAQ
Which is better to reduce: the term or the payment?
For the overpayment, reduce the term: interest accrues for fewer months. People lower the payment to free up the budget – when the load is heavy or there is no reserve for unexpected costs.
How do I calculate early repayment of a mortgage?
Enter the remaining balance, the rate, the months left and the extra payment. The calculator works out the annuity payment, the new term or the new payment, and compares interest with the no-extra-payment case.
Can I repay a loan early in part?
Usually yes: you pay in part of the sum and choose what to reduce. The notice terms are in the contract, and the result is in the new schedule, which is worth checking against the calculation.
What is loan refinancing in plain words?
It is a new loan used to close the old one, usually for a lower rate or payment. It pays off if the saving on interest is bigger than the cost of switching: fees, valuation, insurance.
What happens to the insurance when I repay a loan early?
It depends on the type of insurance and the contract: sometimes part of the premium can be refunded. Check the contract and the current law – the AI can help you draft questions for the lender.
What should I do after repaying a loan early?
Get the new payment schedule and check the balance, the payment and the date of the last instalment. After full repayment, ask for a certificate that the debt is closed.
Is this financial advice?
No, it is not financial advice. The calculator uses the annuity formula and the AI explains the numbers and options. The decision and the exact figures come from your contract and schedule.
Run the numbers before you hand money to the lender
Two options, the overpayment in rubles and a review of your schedule in the chat.
Open the calculator