# 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**

1. **No prepayment penalties** — ever.
2. **Proration is automatic** — the discount is calculated and applied the moment you make an early payoff.
3. **It's day-based** — we count the exact number of days you've had the funds, not weeks or months.
4. **Works with any plan** — whether you're on a Net 60, Net 90, or biweekly installment schedule.
5. **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.