Loan Prepayment Calculator
See exactly how much interest and time you can save by prepaying your loan — compare a one-time lumpsum or extra monthly payments against your regular EMI schedule.
Loan Balance: Original vs With Prepayment
This chart compares your outstanding balance year by year — with prepayment, the balance falls faster and hits zero well before your original tenure ends.
How Prepayment Reduces Your Loan Cost
Every extra rupee you pay goes directly toward your principal, which reduces the interest calculated on your remaining balance for every month that follows — the earlier the prepayment, the bigger the compounding effect.
EMI Formula
EMI = P × R × (1 + R)N / ((1 + R)N − 1)
Where: P is the outstanding principal, R is the monthly interest rate (annual rate ÷ 12), and N is the number of remaining months. Every prepayment reduces P immediately — when you choose Reduce EMI, this formula is applied again right after the prepayment to work out your new, lower EMI over the same remaining tenure.
Original EMI
₹26,034.70
EMI (unchanged)
₹26,034.70
With Reduce Tenure selected, your EMI never changes — the prepayment simply means each future EMI clears a larger share of principal, so the loan finishes earlier than originally planned.
Prepayment Impact Example
See exactly how your prepayment plan changes your loan, using the values you've entered.
Worked Example
Suppose you make a one-time prepayment of ₹5,00,000.00 in month 24 of your loan, and choose to reduce your tenure.
Without any prepayment, your loan would run for 20 yr and cost ₹32,48,327.28 in total interest.
With this prepayment plan, your loan instead runs for 14 yr 4 mo, costing ₹19,57,868.83 in total interest — a saving of ₹12,90,458.46.
A few things worth keeping in mind about prepayment:
Prepaying earlier in the loan tenure saves significantly more interest, since early EMIs are mostly interest rather than principal.
Reduce Tenure generally saves more total interest than Reduce EMI, since you keep paying the same amount toward a shrinking loan.
For floating-rate home loans, RBI rules mean individual borrowers can't be charged a prepayment penalty — but check your loan agreement for other loan types.
Year-wise Repayment Breakdown
See your principal paid, interest paid, prepayment applied, and year-end balance for each year of your loan with prepayment.
Swipe horizontally to view the complete repayment schedule.
| Year | Principal Paid | Interest Paid | Prepayment | Year-End Balance |
|---|---|---|---|---|
| 1 | ₹59,706.88 | ₹2,52,709.49 | ₹0.00 | ₹29,40,293.12 |
| 2 | ₹64,984.42 | ₹2,47,431.94 | ₹5,00,000.00 | ₹23,75,308.70 |
| 3 | ₹1,14,923.91 | ₹1,97,492.46 | ₹0.00 | ₹22,60,384.80 |
| 4 | ₹1,25,082.13 | ₹1,87,334.23 | ₹0.00 | ₹21,35,302.67 |
| 5 | ₹1,36,138.26 | ₹1,76,278.11 | ₹0.00 | ₹19,99,164.41 |
| 6 | ₹1,48,171.64 | ₹1,64,244.72 | ₹0.00 | ₹18,50,992.77 |
| 7 | ₹1,61,268.67 | ₹1,51,147.70 | ₹0.00 | ₹16,89,724.10 |
| 8 | ₹1,75,523.35 | ₹1,36,893.01 | ₹0.00 | ₹15,14,200.75 |
| 9 | ₹1,91,038.02 | ₹1,21,378.35 | ₹0.00 | ₹13,23,162.74 |
| 10 | ₹2,07,924.04 | ₹1,04,492.32 | ₹0.00 | ₹11,15,238.70 |
| 11 | ₹2,26,302.63 | ₹86,113.73 | ₹0.00 | ₹8,88,936.06 |
| 12 | ₹2,46,305.73 | ₹66,110.63 | ₹0.00 | ₹6,42,630.33 |
| 13 | ₹2,68,076.92 | ₹44,339.45 | ₹0.00 | ₹3,74,553.42 |
| 14 | ₹2,91,772.48 | ₹20,643.89 | ₹0.00 | ₹82,780.94 |
| 15 | ₹82,780.94 | ₹1,258.79 | ₹0.00 | ₹0.00 |
Frequently Asked Questions
Common questions on how loan prepayment works, choosing between reducing your tenure or your EMI, and whether prepaying makes sense for you.
Disclaimer
Results are estimates for informational purposes only and may differ from actual values. Do not make financial, investment, tax, or legal decisions based solely on these results. Verify important calculations with official sources or a qualified professional. CalcMint is not liable for any loss or damage resulting from the use of this calculator.
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