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Loan prepayment calculator

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

Also known as: Extra payment calculator, Overpayment calculator, Loan overpayment calculator.

  • Free, no sign-up
  • Formula shown
  • Runs on your device
  • Any 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.
₹
Paid on top of the EMI every month or every year, starting with the first extra payment. 0 for none.
months
How many regular payments come before the first extra payment. Must be less than the tenure.
After each extra payment
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
Total extra paid₹2,00,000
New tenure3 years 11 months
Interest saved₹82,871
Illustrative estimate. Assumes a fixed rate, end-of-month payments, extra payments straight after a regular payment, and no prepayment charges. Check your lender's terms.

Balance by year

02.5 lakh5 lakh7.5 lakh10 lakh12345
Without extra paymentsWith extra payments
YearWithout extra paymentsWith extra payments
1₹8,37,732₹6,37,732
2₹6,58,472₹4,37,530
3₹4,60,442₹2,16,363
4₹2,41,675₹0
5₹0₹0

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

Each extra payment reduces the balance straight after a regular payment. In EMI mode the EMI is worked out again on the remaining balance and months after each one. 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.
  • Extra payments are made straight after a regular payment: the one-off once, regular ones every month or every 12 months from then on.
  • 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 a small regular extra payment worth it?

Often, yes. Even a modest amount every month cuts the balance early, when most of each EMI is interest. Try it against a one-off payment of the same yearly total.

Is an earlier prepayment better?

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

Sources

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