Loans & payments
Business loan early payoff calculator
See what it takes to pay off a loan today and how much interest you save, after any prepayment fee.
How this is calculated
Payoff = remaining balance + prepayment fee · Saving = remaining payments − payoff
The remaining balance is what is left after the payments you have made, following the loan’s own schedule.
Worked example
A $100,000 loan at 10% over 5 years has a $2,124.70 monthly payment. After 24 payments the balance is $65,847.22. The 36 payments left would total $76,489.36, so paying off now saves $10,642.14 of interest — or $9,325.20 after a 2% prepayment fee of $1,316.94.
Assumptions
- Monthly payments at a fixed rate, made on time.
- You pay off right after a regular payment, so no extra daily interest is due.
- The prepayment fee is a percentage of the balance. Some loans charge a flat fee or keep all remaining interest.
Questions owners ask
Does paying off a merchant cash advance early save money?
Usually not. The payback is set by the factor rate, so you owe the same total however fast you repay — unless the agreement offers an early-payoff discount.
What is a prepayment penalty?
A fee some lenders charge when you repay early, to recover interest they expected to earn. Check your agreement for the amount and how long it applies.
Should I pay off a loan or keep the cash?
Compare the interest saved with what the cash could earn in the business, and keep enough in reserve for slow months.
Read before you borrow
Guides behind the numbers.
01Business loan rates and costs: what you actually pay
Understand business loan rates, APR, factor rates, fees, payment frequency and total repayment so you can compare financing offers accurately.
Read the guide ↗
02Line of credit or term loan?
Compare a business line of credit vs. term loan by use, payment structure, cost, flexibility and cash-flow fit with practical examples.
Read the guide ↗
03How to choose the right financing for the job
Learn how to choose business financing by matching the use of funds, repayment structure, timing and risk to your company’s cash-flow cycle.
Read the guide ↗Calculators give estimates for educational purposes only. They are not an offer, approval or commitment to lend. Actual rates, fees, terms and payments are set by independent providers and depend on their review. ScaleKit Financing is operated by Arch Ventures LLC and is not a lender.