Loan Prepayment Calculator
See how much interest you could save and how many months you could cut from a loan by paying a little extra each month or making a one-time lumpsum prepayment.
Estimated Interest Saved
₹12,75,693
loan closes 77 months earlier · EMI stays ₹26,992
Original total interest
₹34,78,027
Interest with prepayment
₹22,02,334
Original tenure
20 yr 0 mo
New tenure
13 yr 7 mo
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Tools that naturally follow this calculation.
Outstanding balance: original vs with prepayment
- Original schedule
- With prepayment
Year-by-year with prepayment
| Year | Paid | Interest | Balance |
|---|---|---|---|
| 1 | ₹3,83,901 | ₹2,65,182 | ₹28,81,281 |
| 2 | ₹3,83,901 | ₹2,54,045 | ₹27,51,425 |
| 3 | ₹3,83,901 | ₹2,41,864 | ₹26,09,388 |
| 4 | ₹3,83,901 | ₹2,28,540 | ₹24,54,026 |
| 5 | ₹3,83,901 | ₹2,13,966 | ₹22,84,091 |
| 6 | ₹3,83,901 | ₹1,98,025 | ₹20,98,214 |
| 7 | ₹3,83,901 | ₹1,80,588 | ₹18,94,901 |
| 8 | ₹3,83,901 | ₹1,61,516 | ₹16,72,516 |
| 9 | ₹3,83,901 | ₹1,40,655 | ₹14,29,270 |
| 10 | ₹3,83,901 | ₹1,17,837 | ₹11,63,205 |
| 11 | ₹3,83,901 | ₹92,878 | ₹8,72,182 |
| 12 | ₹3,83,901 | ₹65,578 | ₹5,53,859 |
| 13 | ₹3,83,901 | ₹35,717 | ₹2,05,675 |
| 14 | ₹2,11,616 | ₹5,942 | ₹0 |
Example calculation
On a ₹30,00,000 loan at 9% with 20 years left, the EMI is ₹26,992 and the remaining interest would be ₹34,78,027. Adding ₹5,000 every month clears the loan in 13 yr 7 mo instead of 20 yr 0 mo, cutting interest to ₹22,02,334 — a saving of ₹12,75,693.
How prepayment saves interest
Loan interest is charged every month on the outstanding balance. Any amount you repay beyond the scheduled EMI reduces that balance immediately, so every future month's interest is calculated on a smaller number. The earlier you prepay, the more months benefit.
What this calculator assumes
Your EMI stays the same and the extra payments shorten the tenure — the most common outcome when you prepay. Lenders can instead keep the tenure and reduce the EMI; the interest saving is smaller in that case. The one-time lumpsum is applied in the month you choose, on top of that month's EMI.
Prepay or invest?
Prepaying gives a certain 'return' equal to your loan rate. Investing the same money could earn more or less, with risk. This tool only shows the loan side of that comparison; use the SIP calculator to illustrate the other side with your own assumptions.
Assumptions & Limitations
- •Constant interest rate; EMI unchanged; extra payments reduce tenure.
- •Prepayment charges or lock-in periods some lenders apply are not modelled.
- •Extra monthly payment is assumed from the first month.
Frequently asked questions
Methodology last reviewed: 1 June 2026