About Loan Prepayment Calculator
Loan prepayment can reduce the outstanding principal and may reduce future interest. The actual effect depends on the lender\u2019s rules and whether the borrower reduces EMI, tenure, or both.
LOANS
Loan Prepayment Calculator
Estimate how an extra loan payment can affect outstanding principal, interest cost and repayment period.
Estimated interest saved
₹5,41,388
Current EMI
₹21,696
New EMI
₹17,356
Balance after prepayment
₹20,00,000
New tenure
20 years
How to use this calculator
- Enter the outstanding loan details.
- Enter the planned prepayment amount.
- Choose the relevant repayment assumptions.
- Compare the estimated interest and balance impact.
Calculation methodology
The calculator first estimates the original repayment schedule, subtracts the planned immediate prepayment from the outstanding principal, and then models either a lower EMI at the same tenure or the same EMI with a shorter tenure.
Important assumptions and limitations
The model assumes the prepayment happens immediately and does not include lender-specific prepayment charges, rate changes, taxes or rounding differences.
Frequently asked questions
What is loan prepayment?
It is an additional payment toward the outstanding principal before the scheduled loan maturity.
Can prepayment charges apply?
They can, depending on the lender, loan type, agreement and applicable rules. Check your lender’s current terms.
Disclaimer: Results are estimates for educational and informational purposes. They are not financial, tax, legal or investment advice. Rates, tax rules and product terms can change; verify current applicable rules before making financial decisions.