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Loan prepayment calculator

Paying extra on a loan? Compare the interest and time left with and without a part-payment.

₹
%

Enter the rate from your bank or lender. Rates change; this tool does not know current rates.

Tenure in
Prepayment
₹
After the prepayment

The month of your first EMI. Used only to show the end date.

Interest saved
₹5,33,630.57₹5.3 lakh
Total interest without prepayment
₹10,82,776.63₹10.8 lakh
Total interest with prepayment
₹5,49,146.06₹5.5 lakh
Tenure
240 → 156 months84 months saved
Without prepaymentWith prepaymentBy year · peak ₹9.8 lakh
Outstanding balance at the end of each year, without and with prepayment
YearWithout prepaymentWith prepayment
1₹9,80,098₹7,80,098
2₹9,58,436₹7,40,758
3₹9,34,860₹6,97,941
4₹9,09,200₹6,51,340
5₹8,81,272₹6,00,619
6₹8,50,875₹5,45,415
7₹8,17,792₹4,85,332
8₹7,81,784₹4,19,937
9₹7,42,593₹3,48,763
10₹6,99,939₹2,71,297
11₹6,53,514₹1,86,984
12₹6,02,985₹95,219
13₹5,47,990₹0
14₹4,88,135₹0
15₹4,22,988₹0
16₹3,52,083₹0
17₹2,74,911₹0
18₹1,90,918₹0
19₹99,500₹0
20₹0₹0

Estimates for illustration only, based on the numbers you enter. Your bank or lender may calculate differently. This is not financial, tax or legal advice.

Some loans carry a prepayment or foreclosure charge, and tax benefits on home-loan interest are not included. Check your loan terms before prepaying.

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How it's calculated

The EMI is the loan amount × monthly rate × (1 + monthly rate)^months ÷ ((1 + monthly rate)^months − 1), rounded to the paisa. The monthly rate is the annual rate divided by 12.

Each month, interest is charged on the balance and rounded to the paisa, like a real loan schedule. The rest of the EMI reduces the balance. The last instalment pays exactly what is left, so the loan ends on time.

A prepayment is taken off the balance after that month's EMI. With "Reduce tenure" the EMI stays the same and the loan ends sooner; with "Reduce EMI" the EMI is worked out again on the remaining balance over the remaining months.

Because interest is rounded every month here, the total without prepayment can differ by a few paise from the EMI calculator, which works at full precision. Both are correct for their method.

Questions

Is it better to reduce the tenure or the EMI?

Reducing the tenure usually saves more interest, because the loan is repaid sooner. Reducing the EMI lowers your monthly outgo instead. Compare both above for your numbers.

Does my bank charge for prepaying?

It depends on your loan. Some loans carry a prepayment or foreclosure charge. Check your loan agreement or ask your lender before prepaying.

Why is my bank's figure slightly different?

Banks may count days differently, change a floating rate during the loan, or apply prepayments on a different date. Treat this as an estimate.