Loan prepayment calculator
See how paying a little extra each month shortens a loan and cuts the interest. Move the sliders or type your own numbers.
₹10,89,361
- Interest you still pay
- ₹16,17,579
- Interest saved
- ₹10,89,361
- New loan tenure
- 12 years 11 months
- Time saved
- 7 years 1 month
This calculator gives estimates for learning. Real rates, charges and returns vary, and nothing here is advice or a recommendation. Read the disclaimer.
How a monthly prepayment works
Each month the lender adds interest on the balance, then your payment reduces it. Paying extra reduces the balance faster, so less interest is added every month after. The calculator keeps your EMI the same, adds the extra amount to it and counts the months until the balance is zero, then compares the interest with and without the extra payment.
It assumes a fixed rate and the same extra amount every month. Fees, insurance and rate changes are not included.
Common questions
How does paying extra on a loan save interest?
Interest is charged on the balance you still owe. Anything extra you pay goes straight to the balance, so the next month's interest is lower and the loan ends sooner. The earlier in the loan you pay, the more interest you avoid.
Does the EMI change when I prepay?
In this calculator the EMI stays the same and the loan ends sooner. Some lenders instead let you keep the tenure and lower the EMI. Ask your lender which option it offers and whether it charges a prepayment fee.
Are there charges for prepaying a loan?
Floating-rate home loans taken by individuals generally carry no prepayment charge, but other loans and fixed-rate loans can. Check your loan agreement. The calculator does not include any fees.