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Mortgage Prepayment Calculator

Finance & Investment

Shorter term vs lower payment

Quick Answer

Mortgage Prepayment Calculator: Shorter term vs lower payment. Mortgage Prepayment Calculator uses standard finance formulas to compute accurate results instantly.

0k
mo
%
0k
Max interest saved (shorter term)
20.18 0k CNY
Term 300 → 218 months
Current payment4900 CNY
Interest (no prepay)46.99 0k
Save (lower pmt)9.40 0k
Save (shorter)20.18 0k

Calculation steps

  1. 1Monthly rate i = 3.3% ÷ 12 = 0.2750%, remaining principal P = ¥100.00w, 300 months left
  2. 2Current monthly payment = P×i×(1+i)ⁿ/((1+i)ⁿ−1) = ¥4899.62
  3. 3Total interest (no prepayment) = ¥46.99w
  4. 4After prepaying ¥20.00w → new principal P' = ¥80.00w
  5. 5[Lower payment] new payment = ¥3919.69, interest = ¥37.59w
  6. 6[Shorter term] n' = ln(pmt/(pmt−P'×i))/ln(1+i) ≈ 218 months, interest = ¥26.81w
  7. 7Interest saved — lower payment: ¥9.40w; shorter term: ¥20.18w

Plan comparison

PlanPaymentTermInterestSaved
No prepayment490030046.99—
Lower payment3920 CNY/mo30037.599.40
Shorter term ★same218 mo26.8120.18
Shorter-term always saves more interest than lower-payment for the same prepayment. Check your contract for prepayment penalties (typically waived after 1-3 years). If your investment return reliably exceeds the mortgage rate (e.g. 2.85% housing fund loan), keeping cash may beat prepaying. For equal-payment loans past the halfway point, most interest is already paid — prepayment saves little.

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How to Use

  1. Enter amounts and terms: fill principal, rate and period in the Mortgage Prepayment Calculator (defaults work for a quick try).
  2. Instant results: key figures and cost breakdown update live as you type.
  3. Compare scenarios: tweak any parameter to compare costs and returns across plans.
  4. Copy key numbers: one-click copy for records or sharing with your advisor.

Key Points

  • Mortgage Prepayment Calculator is a free online finance tool — open and use, no sign-up.
  • All calculations run locally in your browser; your data never leaves the device.
  • Key capability: Shorter term vs lower payment.
  • Results come with formulas and reference tables so you can verify every number.

Formula & How It Works

Mortgage Prepayment Calculator formula

Mortgage Prepayment Calculator uses standard finance formulas to compute accurate results instantly.

FAQ

How do I use the Mortgage Prepayment Calculator?
Open the page and fill in the input fields — results update automatically. Shorter term vs lower payment.
Are the results accurate?
Yes. Standard financial formulas and published rate data are used. For official figures, consult your financial institution.
Is it free? Do I need to sign up?
Completely free. No registration, login or download required.
Can I use the results for financial decisions?
Results are for reference. Consult a licensed financial advisor before major decisions.
Does it work on mobile?
Yes. Fully responsive on phones, tablets and desktops.

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Source & Updates

Based on published rate tables and standard financial formulas. Last updated: 2025-07

Authoritative sources:

Last updated:

Formulas and content on this page are reviewed by the YiJianSuan team. For reference only — official sources prevail.

Maintained and periodically reviewed by the YiJianSuan editorial team — review process in ourEditorial Policy.

Cite this page: YiJianSuan. Mortgage Prepayment Calculator[EB/OL]. https://www.yijiansuan.com/en/c/finance/loan-prepayment

Results provided by this tool are for reference only and do not constitute professional advice.