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Loan prepayment calculator

Find out how much a part-prepayment saves, and whether to cut your EMI or your tenure.

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  • Formulas published
₹
%
months

18 yrs

₹
₹
% of amount prepaid

Check your loan agreement or KFS. Enter 0 if none.

%
Interest rate type

Most interest you can save

₹5,94,522

Keeping your EMI the same saves ₹5,94,522 and ends the loan 2 yrs 4 mo sooner. Lowering your EMI instead saves ₹1,84,944.

Current EMI: ₹27,627

Keep EMI, reduce tenure

Interest saved
₹5,94,522
Net saving after charges
₹5,94,522
Loan ends in
15 yrs 8 mo
Time saved
2 yrs 4 mo
EMI
₹27,627

Keep tenure, reduce EMI

Interest saved
₹1,84,944
Net saving after charges
₹1,84,944
New EMI
₹25,740
Loan ends in
18 yrs
Outstanding balance over timeNo prepaymentKeep EMI, reduce tenureKeep tenure, reduce EMI
02y4y6y8y10y12y14y16y18y
Assumptions behind this estimate
  • Interest rate stays the same for the rest of the loan. Floating rates can change, which changes the savings.
  • Prepayments are made together with that month's EMI and reduce principal immediately.
  • Reduce tenure: EMI stays the same and the loan closes earlier. Reduce EMI: the end date stays the same and the EMI is recalculated after each prepayment.
  • Prepayment charge is applied as a % of the amount prepaid, plus GST if selected. Rules on these charges depend on the loan type and lender; check your loan agreement and KFS.
  • Savings are in nominal rupees and do not account for the return you could earn by investing the money instead.

Full methodology and formulas

Most interest you can save

₹5,94,522

How this works

How we simulate a lump-sum or monthly part-prepayment month by month, compare reducing the tenure with reducing the EMI, and net off prepayment charges. Read the full methodology, formulas and sources.

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Frequently asked questions

Is it better to reduce EMI or reduce tenure after prepaying?

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.

Are there charges for prepaying a loan?

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.

Does it matter when I prepay?

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.

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Last reviewed · Reviewed by ClearRupee Editorial Team