Amortization of the remaining balance at the stated APR, the remaining-interest total, and the statutory settlement cap: 58 days' interest when more than 12 months remain, 28 days otherwise (Consumer Credit Act 1974 s.95 as amended; Early Settlement Regulations 2004).
Sources: Consumer Credit (Early Settlement) Regulations 2004.
This is an estimate — the binding figure comes only from 118 118 Money and accounts for exact day counts, payment dates and any fees in your specific agreement. Loans taken before 2011 or above £25,000 may follow older rules. The page assumes no missed payments; arrears change the arithmetic.
settlement = balance + capped days of interest
cap = 58 days if >12 months left, else 28 days
daily int. ≈ balance × APR/1200 ÷ 30.44
you save = interest-to-term − the capped charge