See how much interest you could save by paying off the rest of a personal loan faster than its schedule.
Use this estimator to see what you save by paying off a personal loan faster. Run it twice. First enter today's balance, your rate and the years left on your current schedule: that is the interest you will pay if nothing changes. Then enter the shorter period you are considering. The difference in total interest is your saving.
Why prepayment is usually free. Under the Bank Act, a federally regulated bank must let an individual prepay a fixed-amount consumer loan that is not a mortgage at any time without a charge or penalty for doing so. Ontario's Consumer Protection Act, 2002 (section 76) gives a similar right for credit agreements it covers, and Quebec's consumer protection rules let you repay in full or in part without penalty. Other provinces have comparable rules. If your agreement mentions a prepayment charge, enter it in the fee field and ask the lender which law allows it.
Worked example (illustrative). A $9,000 balance at 10.5% with 3 years left costs about $1,530.79 in further interest at about $292.52 a month. Clearing it in 18 months instead needs about $542.59 a month and costs about $766.58 in interest, a saving of about $764.
Limits. The tool assumes level payments and one rate. A one-off lump sum works differently; see prepaying a personal loan early. Figures are illustrative.
Worked Examples and Checklists
Canadian rules that let you prepay a consumer loan without penalty, how fee refunds work, and illustrative examples of the interest saved by lump sums and faster payments.
