Loan prepayment calculator
Paying Rs 1,00,000 extra after 12 months on a Rs 10,00,000, 10%, 5 year loan saves Rs 45,338 in interest if you keep the EMI and shorten the tenure.
Results update as you type. Nothing you enter is stored.
How it works
A part prepayment cuts the outstanding principal, so less interest is charged from then on. Keeping the EMI and shortening the tenure saves more interest; keeping the tenure and lowering the EMI eases the monthly budget. The calculator shows either choice.
Formula
Reschedule the balance after the prepayment at the same rate: same EMI with fewer months, or the same months with a new EMI
- Lenders may charge a prepayment fee on some loans, so check your loan terms.
Frequently asked questions
Is it better to reduce EMI or tenure after prepayment?
Reducing the tenure saves more interest; reducing the EMI frees up monthly cash. The calculator shows both.
When does prepayment save the most?
Early in the loan, when the outstanding balance and the interest share of each EMI are highest.
Are there charges for prepaying?
It depends on the loan type and lender; read the loan agreement.
Related
This tool is for information only and is not investment, tax or legal advice. Results depend on the inputs and assumptions you enter; check important figures with the official source or a qualified professional.