Loan Prepayment Calculator
See how much interest extra payments could save and whether
it is better to shorten the loan or lower the payment.
Loan Prepayment Calculator
Extra payments
Regular Payment (EMI)
₹0
Interest Without Prepayment
₹0
Option A · Reduce tenure
New tenure
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Time saved
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Interest saved
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Option B · Reduce payment
Regular payment at end
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Tenure (unchanged)
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Interest saved
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Assumptions & method
Monthly payments are made at the end of each month. Interest each month = outstanding balance × (annual rate ÷ 12). The regular payment is the standard EMI: P × r ÷ (1 − (1 + r)−n).
Extra payments are applied entirely to principal right after that month's regular payment. The one-time amount is paid once after the month number you enter. The recurring amount is paid every month from its start month until the loan ends.
Option A keeps your regular payment the same, so the loan ends earlier. Option B recalculates the regular payment after each extra payment so the loan still ends on the original date. Prepayment charges, fees and rate changes are not included. Results are estimates, not lender quotes.
Side-by-side Comparison
| Measure | No prepayment | A: Reduce tenure | B: Reduce payment |
|---|
What is loan prepayment?
Prepayment means paying more than your scheduled instalment, either once or on a regular basis. Because interest is charged on the outstanding balance, every extra amount cuts the balance and lowers the interest charged in all later months. You then choose how to use that benefit: keep the same payment and finish sooner, or lower the payment and keep the original end date. Shortening the tenure usually saves more total interest, while lowering the payment frees up monthly cash flow. This calculator models both side by side. Check your loan agreement for prepayment fees, which can reduce the benefit.