Compare the decision, not just the headline number
An extra payment can reduce principal earlier, but the decision should also consider liquidity, prepayment charges, emergency savings and alternative uses for the money. SolveKit gives an illustrative interest-saving scenario rather than lender-specific amortisation advice.
Scenario workflow
- Start with the same amount or goal for both scenarios.
- Use realistic rate, return and time assumptions.
- Compare the monthly cash flow and the total result.
- Consider liquidity, taxes, fees and risk before deciding.
Useful checks
Monthly impactHow much cash flow changes each month.
Total cost / corpusThe cumulative result over the chosen period.
AssumptionsRate, return, tenure and contribution assumptions.
Real-world termsFees, taxes, scheme rules and lender conditions.