Pre-Payment Penalty Calculator
This Pre-Payment Penalty Calculator helps you estimate the penalty for paying off your loan early and the total payoff amount, including the penalty fee.
Early Loan Payoff Penalty Estimator
Pre-Payment Penalty Formulas
\[
\text{Penalty} = P \times 0.02
\]
\[
\text{Total Pay-Off} = P + \text{Penalty}
\]
Where:
- $$P$$ = Remaining loan balance
- $$Penalty$$ = Pre-payment penalty (typically 2% of remaining balance)
- $$Total Pay-Off$$ = Total amount required to pay off the loan early including penalty
The Pre-Payment Penalty Calculator helps borrowers understand the financial impact of paying off a loan early, including calculating the penalty amount and the total payoff requirement. It is useful for planning early loan closures.