Free Loan Prepayment Calculator
Paying part of your loan early cuts the interest you pay. Enter your loan details and the prepayment to see how much you save, and whether it shortens the loan or lowers the EMI.
Note: Results are estimates for learning and planning. They are not financial, tax or investment advice, and actual figures from your bank or lender may differ. See our disclaimer.
How to use Loan Prepayment Calculator
- Enter the loan amount, interest rate and tenure.
- Enter the prepayment amount and the month number after which you will pay it.
- Choose whether to keep the EMI and finish sooner, or keep the tenure and lower the EMI.
- Click Calculate savings.
About this tool
The calculator works out your EMI, then follows the loan month by month. After the month you choose, the prepayment is subtracted from the outstanding principal. If you keep the EMI, the loan ends earlier. If you keep the tenure, a lower EMI is recalculated for the remaining months. The difference in total interest is your saving. A prepayment early in the loan saves much more than the same amount paid late. The tool assumes a fixed rate. Floating-rate loans change over time, and some lenders charge a prepayment fee, so check your agreement.
Frequently asked questions
Which saves more: lower EMI or shorter tenure?
Keeping the EMI and finishing sooner usually saves more interest overall, because you keep paying the same amount.
When should I prepay?
The earlier the better, because interest is highest in the early years.
Are there prepayment charges?
Floating-rate loans for individuals usually have none, but rules differ. Check your loan terms.
Does the calculator handle several prepayments?
No. It handles one prepayment. You can run it again with the new balance.
Is my data stored?
No. Everything runs in your browser.