Loan Prepayment Calculator
See how much interest and tenure you save with a one-time loan prepayment.
Assumptions used in this calculation
- EMI after prepayment: The EMI is kept the same after prepayment, reducing tenure rather than the monthly payment.
About this calculator
Making a one-time extra payment toward a loan feels like it should obviously help, but exactly how much interest it saves and how much sooner the loan closes depends on when in the schedule you make it, since early prepayments strip out principal while more of the outstanding balance is still accruing interest at the full rate, a relationship that isn't obvious without actually re-running the amortization math. This calculator simulates the full month-by-month schedule for your loan amount, rate and tenure, applies a lump-sum prepayment in the month you specify while keeping the EMI unchanged, and compares the resulting reduced tenure and total interest against the original schedule. It turns a vague sense that 'prepaying is good' into a concrete number, how many months you shave off and how many rupees of interest you avoid, so you can decide whether a bonus or windfall is better used for prepayment or invested elsewhere.
Worked example
₹25,00,000 loan, 9%, 20 years, ₹2,00,000 prepaid in month 12
Result: Interest saved ≈ ₹5,50,000; tenure reduced by ~2 years
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