Early Repayment Discount - How it Works
Early Repayment Discount - How it Works
Edited last month
With Slope, you only pay for the time you actually borrow. If you pay off your balance early, we automatically reduce your financing fee — no questions asked, no penalties, no fine print.
How it's calculated
Your fee is prorated based on the number of days you borrow:
Fee you pay = Total financing fee × (Days borrowed ÷ Total term days)
Your savings = Total financing fee − Fee you actually pay
The earlier you pay off your balance, the more you save.
Example
You draw $350,000 on an 8 biweekly payment plan at 15.95% APR (or 2.78% interest):
| Amount drawn | $350,000 |
| Total financing fee | $9,730 |
| Term | 112 days (~3.5 months) |
| Repayment plan | 8 biweekly installments of $44,966.25 |
| Scheduled payments | Every 2 weeks (weeks 2, 4, 6, 8, 10, 12, 14, 16) |
What happens when you pay off at week 6
You make your first 2 scheduled installments on time (week 2 and week 4), then at week 6 you decide to pay off the entire remaining balance instead of continuing with the installment plan.
At the time of payoff:
| Installments already paid | 2 of 8 ($44,966.25 × 2 = $89,932.50 total) |
| Remaining principal | $350,000 * (6 ÷ 8) = $262,500 |
| Remaining fee (without discount) | $9,730 * (6 ÷ 8) = $7,297.50 |
Proration calculation:
| Days borrowed | 43 (week 6) |
| Total term | 112 days |
| Fee you owe | $7,297.50 × (43 ÷ 112) = $2,801.72 |
| Fee savings | $7,297.50 − $2,801.72 = $4,495.78 saved |
Your early payoff amount:
| Remaining principal | $262,500 |
| Prorated fee | $2,801.72 |
| Total payoff | $265,301.72 |
The bottom line
| Full term | Early payoff (week 6) | |
|---|---|---|
| Total paid | $359,730 | $355,234.22 |
| Total fees paid | $9,730 | $5,234.22 |
| You save | — | $4,495.78 |
By paying off at week 6 instead of week 16, you save ~$4,496 — that's ~62% of the fees you would have owed on the remaining balance.
Key things to know
- No prepayment penalties — ever.
- Proration is automatic — the discount is calculated and applied the moment you make an early payoff.
- It's day-based — we count the exact number of days you've had the funds, not weeks or months.
- Works with any plan — whether you're on a Net 60, Net 90, or biweekly installment schedule.
- Partial early payments count too — each early payment reduces your outstanding balance (and therefore your fee) going forward.
FAQ
Q: Is there a minimum number of days before I can pay early?
A: No. You can pay off your balance any time after your draw — even the next day.
Q: Do I need to request the early payoff discount?
A: No. It's applied automatically when you make a "Full Payment" or "Partial Payment" that exceeds your scheduled amount. You can the option under Orders -> View Order -> Make a payment in your Slope Portal.
Q: What if I make a larger-than-scheduled payment but don't pay off entirely?
A: Partial early payment reduces your remaining principal but does not trigger prorated fee adjustment. Prorated interest savings apply only to full repayments, not partial payments.
Q: Can I see my potential savings before paying?
A: Yes — when you click "Make a Payment" in your Slope portal, the early payoff screen shows you the exact discounted amount before you confirm.