Loan Prepayment Calculator
See how a lump-sum part-payment shortens your loan tenure and how much interest it saves when the EMI stays the same.
- Current EMI
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- New tenure (months)
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- Months saved
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- Total interest after prepayment
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An estimate only; confirm prepayment rules and charges with your lender.
What is the Loan Prepayment Calculator?
This loan prepayment calculator shows what happens when you make a lump-sum part-payment and keep paying the same EMI. It gives the new, shorter tenure in months, the months saved and the interest saved compared with continuing the loan without prepayment.
How it works
The current EMI is worked out from the outstanding balance, rate and remaining months. The lump sum is subtracted from the balance, then the calculator steps month by month, adding interest at the yearly rate divided by 1200 and deducting the same EMI, until the balance reaches zero. Interest saved is the old total interest minus the new total.
How to use it
- Enter the outstanding loan balance and the yearly interest rate.
- Enter the months remaining on the loan.
- Type the lump-sum amount you plan to prepay.
- Read the new tenure and the interest saved.
Loan Prepayment Calculator — FAQ
Does the EMI stay the same after prepayment?
This tool assumes it does, so the loan ends sooner. Some lenders instead let you lower the EMI, which gives a different result.
Are there prepayment charges?
Lenders may charge a fee on part-payments depending on the loan type. Charges are not included here, so subtract them from the saving.
When is prepaying most useful?
Interest is highest in the early years, so a prepayment made early cuts more interest than the same amount paid later.