Early settlement figures on UK personal loans

Searchers often type “settlement figure calculator” when they want a pound amount that would clear a UK personal loan early. LoanCalc Lab can help you understand the idea and sketch reducing-balance paths under labelled assumptions — it cannot issue the figure that discharges your agreement. That figure comes from the lender, for a stated settlement date.

This guide is about unsecured UK personal loans only — not mortgages. A worked EXAMPLE uses Loan A (£8,500 · 24.9% EXAMPLE · 48 months · £0 fee, EMI about £281.36 EXAMPLE). It is not personalised advice, not a credit offer, and not a promise of any rebate or payoff amount.

Can a calculator give your settlement figure?

No for an official quote. A third-party early settlement calculator — including LoanCalc Lab — does not replace the lender’s settlement statement. Day-count rules, accrued interest to a settlement date, rebate adjustments and any charges the agreement allows are set by the lender and the regulated framework that applies to your product.

Yes for an EXAMPLE sketch. You can use the extra payment / early payoff calculator and the amortisation schedule to see how principal and interest move under stated assumptions, and to compare gradual overpaying with a full-term path. Treat those outputs as illustrations only. Always ask the lender for a written settlement figure before you pay to close the account.

Who this guide is for — and who it is not for

This guide is for readers with (or considering) a fixed-sum UK personal loan who want to understand settlement figures, how overpaying differs from full early settlement, and what an illustrative schedule can and cannot show.

It is not for mortgages, a DIY settlement quote you can rely on, or advice to settle early. LoanCalc Lab is not a lender. EXAMPLE figures are illustrative only.

What a settlement figure includes

If you want to clear a loan in full, ask the lender for an early settlement figure (sometimes called a settlement quote or payoff amount). That is the amount the lender says will discharge the agreement if paid by a stated date. It is not the same as “remaining principal on last month’s statement”, and it is not the sum of every future EMI still on the original schedule.

A settlement figure can reflect interest accrued to a settlement date, adjustments for paying ahead of the contractual timetable, and any charges the agreement allows. Quotes are usually time-limited. Asking for a quote does not oblige you to settle.

Worked EXAMPLE — Loan A (UK)

All figures below are labelled EXAMPLE. They are not a live quote, not a credit offer, and not a settlement statement.

• EXAMPLE Loan A: £8,500 principal · 24.9% EXAMPLE annual rate · 48 months · £0 arrangement fee · EMI about £281.36 EXAMPLE

Short comparison under LoanCalc Lab’s reducing-balance model (still EXAMPLE only):

• Full-term path EXAMPLE: run all 48 months with no extras → total repayable ≈ £13,505 EXAMPLE, total interest ≈ £5,005 EXAMPLE.
• +£50/month EXAMPLE: add £50 EXAMPLE every month on top of the £281.36 EXAMPLE EMI → clears in about 37 months EXAMPLE, total interest ≈ £3,760 EXAMPLE (about £1,245 EXAMPLE less interest than the full-term path). That is an overpayment path, not a full early settlement.
• Ask the lender after month 24 EXAMPLE: halfway through the calendar term, roughly £5,277 EXAMPLE of principal remains on a simple schedule, with about £1,476 EXAMPLE of interest still due if the loan ran to month 48. That leftover interest is not automatically rebated in full. For a true close-out amount after month 24, request the lender’s settlement figure for a stated date — do not treat £5,277 or £1,476 as your personal quote or rebate.

Reproduce the schedule and extra-payment scenarios in the amortisation schedule and the extra payment / early payoff calculator. Compare those illustrations with a real settlement quote before you act.

The UK rules in brief (checked Oct 2026)

For regulated consumer credit agreements, such as most unsecured UK personal loans, the law sets out a few fixed points. They are summarised here from the primary sources; your agreement and the lender’s settlement statement are what actually apply.

• You can settle at any time. Under the Consumer Credit Act 1974, section 94 you can repay the whole loan early, or part of it, by giving notice to the lender. Notice does not have to be in writing.
• Settlement statement. If you ask for a settlement figure, the lender must provide it within 7 working days (the period set by regulation 9 of the Consumer Credit (Early Settlement) Regulations 2004).
• The 28-day settlement date. The rebate of future interest is worked out as if you settle 28 days after the lender receives your notice, or a later date you name, provided you pay by then (regulation 5).
• A possible one-month deferral. Where the loan runs for more than a year, the lender may push the rebate date back by a further month, or 30 days if it chooses (regulation 6). This is where the familiar “about 58 days’ interest” figure comes from (28 + 30 days).
• Compensation on fixed-rate loans. Under section 95A, if the rate is fixed and you repay more than £8,000 early (or more than £8,000 in total across payments in any 12-month period), the lender may claim its costs. The claim must be fair and objectively justified, and it cannot be more than the lower of: 1% of the amount repaid early (if more than a year of the agreement is left) or 0.5% (if a year or less is left), and the interest you would have paid over the remaining term.

The FCA’s Consumer Credit sourcebook sits alongside these rules (FCA Handbook — CONC). MoneyHelper stresses weighing early-repayment costs against the interest you hope to avoid before using spare cash to clear credit (MoneyHelper — How to reduce your borrowing).

None of this promises a particular pound amount. Whether a rebate or a compensation claim applies, and what appears in your settlement figure, depend on the agreement and the lender’s statement — not on this EXAMPLE.

Full settlement vs overpaying along the way

• Full early settlement — pay the settlement figure and close the agreement.
• Partial overpayment — pay more than the contractual EMI (or a lump sum) while the loan continues, aiming to cut interest and/or shorten the term.

On EXAMPLE Loan A, the £50 EXAMPLE monthly extra is the second path: the loan stays open until cleared in ~37 months under the model. Full settlement after month 24 would instead require the lender’s settlement figure for the remaining balance on a stated date — which may be higher or lower than the ~£5,277 EXAMPLE principal left on a simple schedule once interest to the settlement date and any rebate are applied.

For when overpaying sits beside keeping a cash buffer, see overpaying a personal loan vs saving.

When settlement sits inside a refinance decision

Refinancing usually means a new personal loan pays off the old one. The cost of leaving is an early-settlement problem: you need the current lender’s settlement figure (including any rebate adjustment and any exit cost the agreement allows) before judging whether a lower new rate survives fees. Put that figure into the “cost of leaving” side, alongside any arrangement fee on the new product. See refinance a personal loan when it pays for fee break-even under EXAMPLE assumptions — still not a substitute for a real settlement quote.

What an early settlement calculator can show

For EXAMPLE Loan A (£8,500 · 24.9% · 48 months · £0 fee), use the extra payment / early payoff calculator and the amortisation schedule. Change extras or a lump sum one at a time. Clearer interest maths under stated assumptions — not a settlement quote and not a sales pitch to settle early.

Practical checklist

• Confirm the product is a UK personal loan (not a mortgage) and read the early-repayment section
• Request a written settlement figure and note its validity date
• Compare that figure with continuing contractual EMIs — without assuming a rebate size
• For overpayments, ask how the lender will re-cast EMI or term
• If refinancing, add the settlement figure to the cost of the new deal before judging break-even
• Keep emergency savings in mind before clearing a loan with cash you may need later

FAQs

What is an early settlement figure on a UK personal loan?

It is the amount the lender says will discharge the agreement if paid by a stated date. It can include interest to that date and contractual adjustments — it is not simply “remaining principal on last month’s statement”.

Can an online calculator give me my settlement figure?

No for an official quote. LoanCalc Lab and similar tools can only sketch EXAMPLE paths under stated assumptions. Request a written settlement figure from the lender before you pay to close the account.

Is overpaying the same as early settlement?

No. Overpaying means paying more than the contractual EMI (or a lump sum) while the loan continues. Full early settlement means paying the settlement figure and closing the agreement. On EXAMPLE Loan A, +£50/month is an overpayment path; settling after month 24 needs the lender’s quote.

Do I automatically get a rebate of future interest?

Not automatically, and not as a DIY estimate from leftover schedule interest. Some regulated UK personal loans include a rebate of some future credit charges when you settle early; whether it applies and how much appears in the settlement figure depend on the agreement and the lender’s statement.

What EXAMPLE figures does this page use?

Loan A EXAMPLE: £8,500 · 24.9% · 48 months · £0 fee · EMI about £281.36. Full-term interest ≈ £5,005 EXAMPLE; +£50/month ≈ 37 months and ≈ £3,760 interest EXAMPLE; after month 24 ≈ £5,277 principal remaining EXAMPLE. All labelled EXAMPLE — not a quote.

What the figure is not

Remaining-balance and interest-avoided numbers here are labelled EXAMPLE. They are not a lender settlement figure, not a rebate promise, and not advice to clear or keep a loan. Always request an official settlement quote from the lender before you pay.

Sources

Product-norm wording only (no scraped rate tables): MoneyHelper — credit and debt; FCA — consumer credit. Figures on this page are labelled EXAMPLE and are not a quote. Legislation links on this page: legislation.gov.uk. Last checked 26 October 2026.

Disclaimer

This guide and all EXAMPLE figures are illustrative only. They are not personalised financial advice, not legal advice, not a credit offer, and not a calculation or promise of any rebate, settlement figure, interest saving, or early-repayment charge. LoanCalc Lab is not a lender. Rates, fees, day-count conventions and early-settlement terms vary by product and lender. Always read the lender’s disclosure, credit agreement and official settlement information for your circumstances before you overpay, settle early, or refinance.