Loan Prepayment Calculator
See how a one-time part-payment affects your loan's tenure or EMI.
How this works
This simulates your loan month-by-month: each month, interest is charged on the outstanding balance, and the rest of the EMI reduces principal. At your chosen month, the prepayment amount is deducted directly from the outstanding balance. From there, you can either keep the same EMI (which pays off the loan sooner) or recompute a lower EMI for the remaining original tenure — both are compared against the original no-prepayment schedule.
Frequently asked questions
Which option saves more money — reducing tenure or reducing EMI?
Reducing tenure while keeping the EMI the same almost always saves more total interest, since the loan is paid off faster and accrues less interest overall. Reducing EMI mainly helps your monthly cash flow, not your total cost.
Does this account for prepayment penalties?
No — some loans (especially fixed-rate ones) charge a prepayment penalty. Floating-rate home loans in India generally cannot charge one by regulation, but check your specific loan agreement.