Definition
A payout figure is the total amount a lender will accept to close a loan on a specific date. Expect it to combine the remaining balance, anything that has built up since your last instalment, and fees for leaving early, breaking a fixed period or releasing security. Each quote applies to one date only, since charges keep building day by day.
When you want to close a loan, the payout figure is the only number that matters. The balance on your last statement is rarely the same thing.
What it includes
A payout figure brings together the principal outstanding, charges accrued since the last repayment and any fees for closing early or releasing security. With some pricing structures, it also includes part or all of the cost still to be charged.
Using it
Compare the payout figure with the total of the repayments you would otherwise make. The difference is your saving. The early payout savings calculator does it in seconds.
Timing
Because charges change daily, payout figures expire. A delayed settlement means you need a fresh quote. For refinances and consolidations, make sure every lender’s payout figure is ready before settlement day. To explore refinancing an expensive facility, make one enquiry.
Common questions
How do I request a payout figure?
Email or write to the lender asking for the amount needed to close the loan on a named day. Most provide one within a few business days.
Why is my payout figure higher than my balance?
Items can include charges built up since the last payment, exit and break fees, the cost of releasing security and, for fixed-total pricing, unearned charges.
Sources and further reading
Related terms