Workings

Loan Prepayment Calculator (Part-Payment Savings)

Enter your loan, the one-time amount you plan to prepay and when, and choose whether it should shorten the loan or lower the EMI.

Loan Prepayment Calculator

All fields are required unless marked “optional”.

Reads as 3,000,000

Reads as 300,000

Enter 0 to prepay at the very start.

Only changes how amounts are displayed — it never changes the calculation.

Your result will appear hereFill in the fields and press “Calculate savings”.

Formula

  • EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
  • balance after k EMIs = P(1 + r)ᵏ − EMI × ((1 + r)ᵏ − 1) ÷ r
  • new balance = balance − prepayment
  • r — monthly rate
  • n — total months
  • The schedule is then recalculated with either the same EMI or the same remaining months

A prepayment reduces the principal, so all later interest is charged on a smaller balance.

Worked example

30,00,000 at 8.5% for 20 years; prepay 3,00,000 after 24 EMIs

Original loan amount
3,000,000
Interest rate per year
8.5 %
Loan tenure
20
Tenure in
Years
One-time prepayment amount
300,000
EMIs already paid when you prepay
24
Use the prepayment to
Shorten the loan (keep the EMI)
Currency symbol
₹ Rupee (INR)

Interest saved

₹8,74,379.59

New loan tenure: 16 years 3 months

Time saved: 3 years 9 months

Outstanding principal before prepaying: ₹28,75,308.65

How it works

When you prepay part of a loan, the money goes straight to principal, so every later month's interest is charged on a lower balance. There are two ways to benefit: keep paying the same EMI and finish earlier, which saves the most interest, or keep the original end date and pay a lower EMI, which helps monthly cash flow.

The tool builds the exact month-by-month schedule in whole paise, in the same way as the EMI calculator, applies your prepayment after the number of EMIs you choose, and compares total interest with and without it. It reports the interest saved, the new tenure or EMI, and the balance before and after. Prepaying earlier saves much more than prepaying late, because the balance, and therefore the interest, is highest at the start.

Many lenders charge a fee on prepayment for some loans, and rules differ between fixed and floating rates, so check your loan agreement. The EMI Calculator shows the original loan, the Amortization Schedule Calculator handles a regular extra payment every month, and the Loan Interest Rate Calculator finds the rate if you know the EMI.

Assumptions and limits

  • Fixed interest rate, equal monthly instalments, reducing balance.
  • No prepayment charge or processing fee; lenders often differ.
  • Only one prepayment is modelled; use the amortization calculator for regular extra payments.
A calculation, not financial adviceThis calculator does the arithmetic from the numbers and assumptions you give it. Real financial products add fees, taxes, rate changes and conditions it can’t know. Confirm figures with your lender, bank or a qualified adviser before you decide.
EMI CalculatorMonthly EMI, total interest and total payable for any reducing-balance loan.Amortization Schedule CalculatorFull month-by-month loan schedule, with the interest saved by paying extra each month.Loan Interest Rate CalculatorFind the annual interest rate hidden in a loan's monthly payment, amount and tenure.Loan Affordability CalculatorEstimate the loan you can afford from your income, existing EMIs, interest rate and tenure.Simple Interest CalculatorSimple interest and total amount from principal, rate and time in years, months or days.

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