Real Amortization Calculation
The remaining principal amount is calculated using real amortization formulas. No simplified calculations, accurate results at the bank level.
Loan Early Closing Profit Loss Calculation
How to Use?
1
Loan Early Closing Profit Loss Calculation ${currentYear} |Real Earnings – Free
Enter Credit Information
2
Enter the loan type, amount, interest rate, maturity, number of remaining installments and monthly installment amount.
Specify Early Closing Details
3
Enter the early closing discount rate and early payment penalty/fee.
See Real Profit/Loss
What is this tool for?
Profit/Loss Analysis
The cost of continuing the loan is compared with the cost of early closing. Net profit or loss is clearly shown.
Early Closing Discount
Banks may apply interest discounts on early closing. This discount is calculated over the remaining principal.
Early Payment Penalty
Early payment penalties or fees may apply to some loans. This penalty can be a fixed amount or a percentage.
When should you use this?
About Loan Early Closing
Loan early closing is the process of closing the loan completely before its term. This process is carried out by paying the remaining principal amount and adding any early payment penalties/fees. Early closing can provide interest savings but may not always be profitable due to penalties and fees.
Real Amortization Calculation
The remaining principal amount is calculated using the real amortization formula:
Formula:
PV = PMT × ((1 - (1 + r)^-n) / r)
PV:
Remaining principal (Present Value)
PMT:
Monthly installment amount
r:
Monthly interest rate (annual interest / 12)
n:
Number of remaining installments
This formula provides accurate results at the bank level instead of simplified calculations.
Profit/Loss Calculation
Early closing profit or loss is calculated as follows:
Cost of Continuing the Loan:
Total amount of remaining installments
Early Closing Cost:
Remaining principal + Penalty + Early payment penalty/fee
Net Profit/Loss:
Cost of continuing - Early closing cost
Early Closing Discount
Some banks apply interest discounts on early closing. This discount:
Is applied to the interest amount calculated over the remaining principal
Discount rate varies from bank to bank
Generally varies between 0% and 50%
No discount is applied on some loans
Early Payment Penalties and Fees
Early payment penalties and fees:
Fixed Amount:
A specific TL amount (e.g., 500 TL)
Percentage:
Percentage of the remaining principal (e.g., 2%)
None:
Frequently Asked Questions
This depends on the remaining principal, interest rate, early closing discount, and penalties. The calculation tool shows net profit or loss by comparing the cost of continuing the loan and the cost of early closing.
Early closing profit = (Total cost of continuing the loan) - (Total cost of early closing). The early closing cost is calculated as remaining principal + discounted interest + early payment penalty/fee.
The early payment penalty varies by bank and loan type. There is no penalty in some loans, while in others it is applied as a fixed amount or a percentage of the remaining principal. You can find out by contacting your bank.
Some banks apply interest discounts on early closing. This discount is applied to the interest amount calculated over the remaining principal. The discount rate varies from bank to bank.
KKDF and BITT rates vary by loan type. There is no tax on housing loans, while 15% KKDF + 15% BITT is applied to personal and vehicle loans. In early closing, it is calculated over the discounted interest.
Remaining principal is calculated using the real amortization formula: PV = PMT × ((1 - (1 + r)^-n) / r). This formula gives the remaining principal amount based on the monthly installment amount, monthly interest rate, and number of remaining installments.
Yes, this tool is completely free. It requires no registration, contains no ads, and offers unlimited usage. All calculations occur in your browser.
No, early closing is not always profitable. It can be harmful due to early payment penalties and fees. The calculation tool helps you decide by performing a profit/loss analysis.