Loan prepayment & part payment calculator

Reducing tenure usually saves more interest, because your EMI stays the same and more of it goes towards principal. Reducing EMI saves less interest but frees up monthly cash flow. The calculator shows both side by side.

A part payment (or part-prepayment) is an extra amount you pay on top of your EMIs, which reduces the outstanding balance while the loan continues. Preclosure, also called foreclosure, means paying off the whole outstanding balance and closing the loan early. Both are prepayments.

The whole part payment goes towards principal, so the balance falls at once. Interest for every later month is charged on that lower balance. Your lender then either keeps the EMI and shortens the tenure, or keeps the end date and lowers the EMI.

For floating-rate loans taken by individuals for non-business purposes, RBI rules bar prepayment charges (for loans sanctioned or renewed from 1 January 2026, and earlier rules already covered most such loans). Fixed-rate loans can still carry a charge. Check your loan agreement and Key Facts Statement, then enter any charge in the calculator to see your net saving.

Yes. Interest is charged on the outstanding balance, so a prepayment made earlier in the loan saves more interest than the same amount paid later. Try different months in the calculator to compare.

The calculation is the same as for a home or car loan: enter the outstanding balance, interest rate and remaining months from your loan statement. Whether and when you can part-pay, and any charge for it, are set out in your loan agreement and Key Facts Statement. Personal loans are often fixed-rate and can carry a charge, so enter it to see your net saving.

Use the loan foreclosure calculator. It works out the outstanding principal after your last EMI, adds the foreclosure charge and GST, and shows the total to pay and the interest you avoid. This calculator is built for part payments.