Prepayment Penalty Calculator
Enter the amount you’ll repay early, the fee rate and the penalty period to see today’s prepayment fee and how it shrinks if you wait. This uses the common pro-rata method.
Estimated prepayment fee-
| Repay at | Months left | Fee |
|---|
How to use the prepayment calculator
- Enter the amount and your loan’s fee rate and penalty period.
- Enter how many months have passed since the loan started.
- Use the table to see how the fee drops if you wait.
Before you prepay
- Compare with interest saved. Repaying ₩30M at 5% saves about ₩1.5M a year.
- Look for a fee-free allowance some loans give each year.
- Refinancing? Add the new loan’s costs too.
Common pro-rata method; an estimate only.
FAQ
How is a prepayment fee calculated?
Typically: repaid amount × fee rate × (months left in the penalty period ÷ penalty period). ₩30M at 1.2% with a 36-month period, repaid after 12 months: ₩240,000.
When does the fee go away?
After the penalty period, often 3 years — check your loan agreement.
Is it worth paying the fee to repay early?
Yes if the interest you save exceeds the fee — higher rates and longer remaining terms make early repayment more valuable.
Why is my bank’s figure different?
Banks usually count days, not months, and terms vary by product. Treat this as an estimate.
Do partial repayments incur fees?
Only on the amount repaid. Some loans allow a yearly fee-free portion.