Loan Prepayment versus Keeping Cash Scenario
Compare net financial positions when cash is prepaid into a loan or retained under an entered return assumption.
YOUR CALCULATION
Result
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Calculation steps
Work through one step at a time or reveal the complete calculation. The steps use your current inputs.
How to calculate
Prepay cash minus the fee while keeping the original monthly payment until payoff. In both strategies invest any unused portion of that same monthly payment budget at month end.
Net financial position=investment account−outstanding loan; compare at a common horizon
Worked example
With loan 1200, zero rates, 12 months and cash 600, prepaying 600 or retaining/investing it both finish with 600 investment cash and no loan at month 12 when unused payment budget is invested.
Assumptions and input details
1–600 months and original monthly payments maintained after prepayment, not recast lower. Fee cannot exceed available cash; principal reduction cannot exceed loan balance. Return is a constant entered scenario, not a forecast. No tax assumptions, liquidity value or borrowing restrictions. Rate/term combinations beyond supported amortization precision are rejected. No recommendation to prepay or invest is implied. No live market data or national tax rules are inferred. Enter consistent amounts in one currency unless explicitly stated otherwise.
Using this calculator
Can I enter my own problem?
Yes. Replace the example values with your own inputs. The result, calculation steps, tables and applicable diagrams update from those inputs. Blank or invalid values clear the result; example values are never silently substituted for missing inputs.
Are the results exact?
Results use floating-point arithmetic and displayed rounding. Read the formula, assumptions and any stated data precision before interpreting the result.
Is my input uploaded?
The calculation runs in your browser. No account, file upload or external AI service is required. Inputs are not saved between page reloads.
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