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Loan Prepayment Calculator

Estimate the interest saved and the shorter tenure (or lower monthly payment) from a lump-sum partial repayment.

Inputs

SGD
%
years
SGD
Based on reducing-balance amortisation. Singapore home loans often have a lock-in period (commonly 1–3 years) with a prepayment penalty (often ~1.5% of the amount prepaid) — check your loan terms.

Interest Saved

Interest saved by prepaying
S$0

How prepayment helps

Prepaying reduces your outstanding principal, so less interest accrues. You can either shorten the tenure (keep the same monthly payment, finish earlier) or lower the monthly payment (keep the same tenure). For the same lump sum, shortening the tenure usually saves more interest.

Prepayment is most effective early in the loan, when the interest portion of each instalment is largest. Watch for lock-in periods and prepayment penalties, and keep enough emergency savings. If your mortgage rate is higher than what you could safely earn elsewhere, prepaying is often worthwhile.

FAQ

Shorten tenure or lower monthly?
Shorten tenure to maximise interest saved; lower monthly to ease cash flow. The choice depends on your priorities.
Is there a penalty?
Often yes during a lock-in period (commonly ~1.5% of the prepaid sum). After lock-in, partial prepayment is usually penalty-free — check your facility letter.
Can I use CPF to prepay?
Yes, CPF Ordinary Account funds can generally be used to reduce a home loan, subject to CPF rules.
When is prepayment best?
Earlier in the loan, when more of each payment is interest, and when your loan rate exceeds your safe alternative returns.