Loan Prepayment Calculator
Calculate how a one-time lump-sum extra payment toward your loan principal reduces either your remaining tenure or your EMI, and how much total interest you save.
- 1Enter your current outstanding loan amount, rate, and remaining tenure
- 2Enter the lump-sum prepayment amount and when you plan to make it
- 3Choose whether to reduce tenure or reduce EMI
- 4Click Calculate to see your interest savings and new schedule
What the tool simulates
You enter the loan principal, rate, tenure, a one-time prepayment and the number of EMIs already paid. The tool finds the outstanding balance at that point, subtracts the prepayment and recalculates the EMI for the same remaining tenure. It then compares total interest with and without the prepayment.
The choice it models
When you prepay you can either lower the EMI (keeping the end date) or keep the EMI the same and finish earlier. This calculator models only the first option: a lower EMI over the same remaining months. Keeping the EMI and shortening the tenure usually saves more interest, but that variant is not shown here.
Reading the numbers
- New balance is the outstanding principal less the prepayment.
- Interest saved compares the original total interest with interest after the prepayment.
- The earlier you prepay, the more interest you save, because most early EMIs are mainly interest.
Check these before prepaying
- Floating-rate home loans for individuals generally have no prepayment charge in India, but fixed-rate and business loans may.
- Keep an emergency fund. Money used for prepayment cannot be taken back.
- Compare the loan's interest rate with what the cash could earn elsewhere after tax.