HELOC Interest-Only Payment vs Amortizing Payment Calculator
Paying off a loan early can sometimes trigger a prepayment penalty. Enter your loan details below to estimate what that penalty might cost you.
About this calculator
Calculate the prepayment penalty you'd owe for paying off a loan early, based on remaining balance, penalty percentage, and penalty type.
Frequently Asked Questions
What is a prepayment penalty?
A prepayment penalty is a fee some lenders charge if you pay off your loan early, either in full or by making extra payments beyond an allowed threshold, since it reduces the interest they'd otherwise collect.
How do I know if my loan has a prepayment penalty?
Check your loan agreement or promissory note for a prepayment penalty clause, which outlines whether one applies and how it's calculated.
Do all loans have prepayment penalties?
No, many mortgages and personal loans today don't include prepayment penalties, but some auto loans, commercial loans, and older mortgages still do.