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Early Repayment Calculator

Compare interest savings for partial or full early repayment of a mortgage: keep the payment and shorten the term, or keep the term and reduce the monthly payment.

Repayment method
Strategy after early repayment

Remaining balance

Remaining balance466,690.31
Balance after early payment366,690.31
New remaining term155 Original term (months)
Payment kept3,082.85
Interest saved88,054.07

Interest comparison

New loan breakdown

What is it

When you have spare money, paying off part of your mortgage early cuts the interest you will pay later. The key question is how to do it: keep the same monthly payment and shorten the term (the total interest drops the most), or keep the same term and reduce the monthly payment (the cash flow gets lighter). This calculator works out the remaining balance first, then shows the new payment or new term, the total interest under each strategy and exactly how much you save.

Notes & fun facts

Banks love the annuity formula because the payment never changes, but that also means early repayment is a negotiation: every extra yuan you pay reduces the principal that future interest is charged on. Most Chinese banks let you choose between keeping the payment or keeping the term — and the difference in total interest is often bigger than people expect.

Origin & history

Early repayment options became common in the 1990s as long-term mortgages spread. In China, the personal housing loan took off after the 1998 housing reform, and by the 2000s banks standardized the two options — shortening the term or lowering the payment — that this calculator compares.

Related keywords

early repayment calculatormortgage early payoffpartial early repaymentfull early repaymentprepayment calculator
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