Loan Prepayment Calculator
See how much interest a part-prepayment saves — finishing sooner or lowering the EMI — once or every year.
What prepaying saves
- New loan length
- 16 years 8 months
- Interest saved if you lower the EMI instead
- ₹2,03,763
- Lower EMI would be
- ₹19,925
| Option | EMI | Length | Total interest |
|---|---|---|---|
| No prepayment | ₹21,696 | 20 years | ₹27,06,939 |
| Keep EMI, finish sooner | ₹21,696 | 16 years 8 months | ₹20,38,603 |
| Lower EMI, same end | ₹19,925 | 20 years | ₹25,03,176 |
- Most lenders shorten the loan by default. Ask for a lower EMI if cash each month matters more than the total.
- Floating-rate home loans to individuals usually carry no prepayment charge; fixed-rate loans may. Check your loan agreement.
Loan and prepayment
How is this calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), r = annual rate ÷ 12 ÷ 100
Each month: interest = balance × r; balance = balance + interest − EMI − prepayment
Lower-EMI option: EMI worked out afresh on the new balance over the months leftRuns in your browser — nothing you enter leaves this device.
About this tool
What it does
This calculator shows what an extra payment towards a loan is worth. Enter the loan, the amount you can prepay and when, and it works through the loan month by month to show the interest you save and how the loan changes. It shows both things a lender can do after a prepayment — keep your EMI and end the loan sooner, or keep the end date and lower your EMI — because the difference between them is often lakhs of rupees, and you usually have to ask for the one you want.
How to use it
- Enter the loan amount, interest rate and tenure, as on your sanction letter.
- Enter the prepayment and after how many EMIs you will pay it.
- Turn on “Pay the same amount again every year” to see the effect of a yearly bonus going to the loan.
- Read the interest saved at the top, then the table comparing the original loan with each option.
- Copy the link to keep these figures or send them to someone.
Limits and your data
- The rate is taken as fixed for the whole loan. Floating rates change, and a rate change alters the EMI or tenure on its own.
- Interest is worked out monthly on the outstanding balance, as banks in India do for home loans. Some lenders charge daily and round differently, so their statement can differ by a few rupees.
- Prepayment charges, processing fees and taxes are not included. Floating-rate home loans to individuals usually carry no prepayment charge, but fixed-rate and many business loans do — check your agreement.
- The prepayment is taken as paid straight after that month’s EMI.
- It does not weigh the alternative of investing the money instead; that depends on returns no calculator can promise.
- All the arithmetic happens in your browser. The figures are kept in the page address so the link reopens them; they are not sent to a server or saved anywhere else.
Questions
Should I reduce the EMI or the tenure?
Keeping the EMI and shortening the loan saves more interest, often much more, because the balance falls faster. Lowering the EMI helps if your monthly budget is tight. The table shows both, so you can see the price of the choice.
Is it better to prepay early in the loan?
Yes. Early EMIs are mostly interest, so money paid then removes the balance that would have gathered interest for the longest. Move “Paid after” and watch the saving shrink as the prepayment gets later.
Does this work for car and personal loans?
The arithmetic is the same for any reducing-balance loan. Personal and car loans more often charge a prepayment fee, which you should subtract from the saving.
Why does my bank’s figure differ slightly?
Banks may charge interest daily, round each instalment, or apply the prepayment on a different date. The difference is usually small; the choice between the two options is the same.