The early repayment savings calculator estimates the potential effect of closing a loan early or making a partial prepayment, including remaining interest, estimated net saving, housing-loan compensation and two partial-payment strategies. This calculator is provided by Hesapstan to help users estimate early repayment and partial prepayment savings in Turkey.
What does this early repayment calculator estimate?
This tool estimates how much you may save if you close an existing loan early or make a partial prepayment. It uses the remaining principal, monthly interest rate, remaining term, loan type and repayment mode to produce an informational estimate.
- It estimates the closure amount and net saving for full early closure.
- It supports two partial prepayment strategies: shorten the term or reduce the monthly installment.
- It separates fixed-rate and variable-rate housing loans.
- It applies a 1% or 2% estimated compensation ceiling for fixed-rate housing loans depending on remaining term.
- It treats variable-rate housing loans as having no early repayment compensation.
This tool does not produce an official bank closure balance. Accrued interest, insurance refunds, accrued fees and the bank contract can change the actual result.
What is the difference between full closure and partial prepayment?
Full closure means paying off the remaining loan balance and ending the loan. Partial prepayment means paying an additional amount to reduce the remaining principal while the loan continues under a revised plan.
After a partial payment, the bank may shorten the term while keeping the installment similar, or keep the term and reduce the installment. Hesapstan estimates both scenarios separately, but the bank's actual repayment schedule is the practical reference.
Before making a partial prepayment, confirm whether your bank will shorten the term, reduce the installment, or apply another structure.
How is full closure estimated?
For full closure, the calculator estimates what would be paid if the loan continued to maturity, then compares that amount with the estimated closure amount. If an early repayment compensation applies, it is included in the estimated closure amount.
The result is still an estimate. The bank may include interest accrued between installments, insurance adjustments, fees, or contract-specific items in the official closure quote.
Partial prepayment strategies: shorten term or reduce installment
A partial payment can serve two different goals. If the monthly installment stays approximately the same, the loan can finish earlier. If the term stays the same, the monthly installment can decrease.
- Shorten-term scenario: the current installment stays similar, the remaining term decreases, and interest saving may be higher.
- Reduce-installment scenario: the term stays the same, the monthly installment decreases, and cash flow becomes easier.
- The actual method depends on bank policy and contract terms.
Do not assume that every partial prepayment shortens the loan term. Ask your bank how the new schedule will be issued.
How does early repayment compensation work in housing loans?
Housing loans require special handling. For fixed-rate housing loans, the early repayment compensation ceiling is treated as 1% if the remaining term is 36 months or less, and 2% if the remaining term is longer than 36 months.
For variable-rate housing loans, early repayment compensation should not be requested. The calculator therefore uses 0 compensation when variable-rate housing loan is selected.
For housing loans, the official bank schedule, contract and closure quote should be checked before making a decision.
How should personal and auto loans be interpreted?
For personal and auto loans, this tool does not calculate a housing-loan-style early repayment compensation. This does not mean the official closure amount is always equal only to remaining principal.
The bank may still include accrued interest, insurance adjustments or contract-related settlement items in the closure amount. The calculator is a planning estimate, not a bank settlement document.
How should the monthly interest rate be entered?
The interest rate in this calculator is monthly. Entering an annual rate into the monthly field will make the result seriously inaccurate.
Check whether the bank screen shows a monthly interest rate, annual interest rate or annual cost rate before entering the value.
What does net saving mean?
Net saving is the estimated difference between paying the loan until maturity and paying earlier under the selected scenario. If a housing-loan compensation applies, it is deducted from the saving.
A positive net saving can make early repayment attractive, but the user should also consider cash reserves, alternative returns, emergency needs and the bank's official closure amount.
Example: shorten term or reduce installment?
Suppose a loan has 100,000 TL remaining principal, 24 months remaining term and 3% monthly interest. If the borrower makes a 20,000 TL partial payment, the shorten-term scenario can end the loan earlier while keeping the installment similar. The reduce-installment scenario keeps the term and lowers the monthly payment.
The better choice depends on the user's goal. Shortening the term usually focuses on interest saving; reducing the installment focuses on monthly budget relief.
Why can the bank closure amount be different?
The bank closure amount can differ because this calculator does not calculate daily accrued interest, insurance refunds, file-fee refunds, contract-specific fees or the exact closure date.
- Interest may accrue between the last installment date and the closure date.
- Insurance premium refunds or adjustments may apply.
- Contract-specific fees or offsets may appear.
- The bank's new schedule after partial payment may differ from the selected estimate.
Before closing a loan or making a partial payment, request an official closure amount or updated repayment schedule from the bank.
Is early repayment always the right decision?
Early repayment is not automatically the best decision. It may be attractive when the loan interest is high, but cash reserves, emergency funds, alternative investment returns and near-term liquidity needs also matter.
If paying early leaves the user without enough cash, the decision may be risky even if the calculator shows interest saving.
What are the limits of this calculator?
This calculator is a planning tool. It uses the values entered by the user and the selected repayment mode to estimate potential savings, but it cannot replace the bank's official system.
- It does not calculate daily accrued interest.
- It does not calculate insurance refunds or file-fee refunds.
- It does not know special contract terms.
- It does not produce an official closure balance.
- It does not guarantee the bank's exact post-prepayment schedule.
- It does not compare early repayment with alternative investment returns.
The result is an informational estimate based on user-entered values. The bank's official document should be used for closure or partial payment decisions.
Frequently Asked Questions
How is early loan closure saving estimated?
The calculator compares the estimated amount that would be paid until maturity with the estimated early closure amount. If housing-loan compensation applies, it is included before net saving is calculated.
Does a partial payment shorten the term or reduce the installment?
Both are possible. Hesapstan estimates term shortening and installment reduction separately, but the bank's new repayment schedule determines the actual treatment.
What is the early repayment compensation for a housing loan?
For fixed-rate housing loans, the estimated ceiling is 1% if the remaining term is 36 months or less, and 2% if it is longer than 36 months. For variable-rate housing loans, compensation should not be requested.
Is early closure free for personal loans?
This tool does not calculate a housing-loan-style compensation for personal loans. However, the bank's official closure amount may still include accrued interest, insurance or contract-related adjustments.
Why can the bank closure amount be different?
Because the bank may include accrued interest until the payment date, insurance refunds, accrued fees and contract-specific items. The calculator is informational only.