Early Loan Settlement Calculator

Saudi Arabia personal finance, SAMA rules. See your remaining balance, the capped early settlement fee, what you pay today, and how much profit you save by settling now instead of paying to term. Runs in your browser; nothing is uploaded.

Use the rate in your contract (the flat profit margin or the reducing rate your schedule uses).

If your statement shows a balance, type it here and the settlement total uses your figure.

Costs the lender paid to a third party under your contract and cannot recover. Usually 0 for personal finance; your contract and the bank quote show it if it applies.

For comparison only. SAMA's cap is the 3-month profit rule, not a percentage.

Copy the fee from your bank's written settlement quote if you have one.

What Early Settlement Costs in Saudi Arabia

You can pay off a Saudi personal loan at any time. Article 84 of the Implementing Regulation of the Finance Companies Control Law says a borrower may pay off the remaining amount early whenever they choose, and the borrower does not owe the term cost (the profit) for the remaining period. Read that sentence twice, because it is where the saving comes from: every future month of profit disappears the day you settle.

The lender does get compensation, and SAMA caps it. The cap has two parts. First, a re-investment cost that may not exceed the term cost of the three months following your payment, calculated on the declining balance from your own repayment schedule. Second, expenses the lender paid to a third party because of your contract, for the remaining period, only where those expenses cannot be recovered and are recorded in your financing file. Nothing else. The same three-month cap appears in the finance lease regulation (Article 11) and the consumer microfinance rules (Article 69), and SAMA's consumer protection rules apply the same standard to banks.

SAMA publishes a worked example in its Financial Consumer Protection Principles and Rules. A personal loan of SAR 50,000 runs over 12 monthly installments of SAR 4,244. After 6 payments, the outstanding balance is SAR 25,212.74. The term cost of the next three months on the schedule is SAR 71.62 + SAR 59.77 + SAR 47.88 = SAR 179.27. The early repayment amount is 25,212.74 + 179.27 = SAR 25,392. Type the same loan into the calculator above (SAR 50,000, about 3.41% a year, 12 months, 6 paid) and you land on the same figures to within a riyal of schedule rounding.

The 1% figure is a different fee

Plenty of articles say the Saudi early settlement fee is 1%. That mixes up two caps. The 1% cap (Article 83 of the same regulation) limits the administrative fees a lender charges when the contract starts: 1% of the financing amount or SAR 5,000, whichever is less. The early payment cap is the three-month term cost rule. On a large balance three months of profit is usually more than 1%; near the end of a loan it is far less.

Mortgages have one extra rule

Article 84 allows a real estate finance contract to prohibit early payment for a period of up to two years from the contract date. Lenders use it. SHL Finance, a Saudi mortgage provider, states the practice plainly in its price disclosures: after two years have passed, early settlement requires the profit of the following three months. For a personal loan there is no lock-in to check; for a mortgage, check your contract date first.

When settling early saves money, and when it saves nothing

The saving is the profit left in your remaining installments, minus the fee. Early in a long loan that gap is wide: profit portions are at their largest and the fee is only three of them. Run the numbers for a SAR 100,000 loan at 6% over 60 months, settled after 24 payments, in the guide linked below: the fee is SAR 929 against SAR 6,049 of remaining profit, a saving of SAR 5,120. At the other end, with three or fewer installments left, the fee swallows every riyal of remaining profit and the saving is exactly zero, so finishing the schedule costs the same and keeps your cash free. Between those points, the calculator gives you the number for your own loan.

How to use this calculator

  1. Type your original loan amount, the annual rate in your contract, the term in months, and how many months you have already paid.
  2. If your bank statement shows a remaining balance, enter it to override the schedule estimate.
  3. Leave the fee on the SAMA cap setting, or switch to the percentage or fixed amount from a written quote to compare.
  4. Read the breakdown: balance, fee, total due today, and the profit saved against paying to term.
  5. Before you pay, request the bank's own settlement quote in writing and compare it line by line.

Sources: SAMA Rulebook, Article 84 (early payment) and SAMA Financial Consumer Protection Principles and Rules (worked example). This page explains a cost for people who already hold a loan; it is a calculator, not borrowing advice.

Frequently Asked Questions

SAMA caps the lender compensation at the term cost (profit) of the three months that follow your payment, worked out on the declining balance from your repayment schedule, plus any third-party costs the lender paid under your contract that it cannot recover. You never owe profit for the rest of the term. This is Article 84 of the Implementing Regulation of the Finance Companies Control Law, and the same cap appears in the rules for banks, finance lease and microfinance.
No. The 1% figure is a different cap: administrative fees at the start of a contract may not exceed 1% of the financing amount or SAR 5,000, whichever is less. Early payment compensation is capped at three months of term cost on the declining balance. Older press coverage sometimes describes roughly 1% of the outstanding balance as what lenders used to charge in practice, which is where the confusion comes from.
For consumer and personal finance, yes. SAMA rules give you the right to prepay the remaining amount at any time, and the lender must accept a partial prepayment equal to one full installment or a multiple of it. Real estate finance is the exception: a mortgage contract may prohibit early payment for a period of up to two years from the contract date.
No. With three or fewer installments left, the fee equals all the profit left in the schedule, so the saving is zero before any third-party costs. Settling also uses cash that could be needed elsewhere, and a partial prepayment that shortens the term saves more profit than one that only lowers the installment.
By the declining balance method. Each monthly installment splits into profit charged on the balance at the start of that month, and principal that reduces the balance. Early in the loan most of the installment is profit; later most of it is principal. Your balance after any payment is the principal still owed, and SAMA requires lenders to spread the term cost across installments this way.
Ask for it. SAMA conduct rules require the bank or finance company to give you a detailed amortization schedule free of charge within one business day of your request, including the figures for early payment, and to notify you in writing of the early payment fees within 10 business days. That written quote is the number that counts; treat this calculator as your way to check it.
No. Every calculation runs in your browser. Your loan amount, rate and balance never leave your device.

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