HaatBeat Calculators

Loan prepayment calculator

See how much interest a one-off extra payment saves, and compare finishing sooner with paying less each month.

Also known as: Loan overpayment calculator.

ReviewedAny currency
₹
The amount borrowed.
% a year
The yearly rate your lender quotes. 0% to 50%.
years
1 to 40 years.
₹
A one-off extra payment towards the principal.
months
How many regular payments come first. Must be less than the tenure.
After the prepayment
Interest saved
₹82,871

Keeping the EMI at ₹21,247.04, the loan ends after 3 years 11 months instead of 5 years, saving about ₹82,871 in interest.

Before and after
Interest without prepayment₹2,74,823
Interest with prepayment₹1,91,952
New tenure3 years 11 months
Interest saved₹82,871
Illustrative estimate. Assumes a fixed rate, end-of-month payments, one prepayment straight after a regular payment, and no prepayment charges. Check your lender's terms.

How it's calculated

Reduce tenure: keep the EMI and pay until the balance is 0 Reduce EMI: new EMI = EMI formula on the remaining balance and months

The balance after the regular payments is reduced by the prepayment. Interest saved is the interest on the original schedule minus the interest on the new one.

Assumptions

  • A fixed rate, with equal payments at the end of each month.
  • One prepayment, made straight after a regular payment.
  • No prepayment charges or fees.

Worked example

On a 10 lakh rupee loan at 10% over 5 years, prepaying 2 lakh after 12 months and keeping the EMI ends the loan early and saves more interest than keeping the end date with a smaller EMI.

Questions

Which saves more: a shorter tenure or a smaller EMI?

A shorter tenure usually saves more interest, because the higher payment clears the balance faster. A smaller EMI frees up monthly cash instead.

Does my lender charge for prepaying?

Some do, especially on fixed-rate loans. Check your loan agreement and include any charge when comparing.

Is an earlier prepayment better?

Yes. The earlier it is made, the longer the balance is lower, so more interest is avoided.

Sources

Last reviewed 1 October 2026 by Sachin. How we check calculators.