Calculate The Numbers

Loan Prepayment Calculator

Compare a one-time prepayment with continuing your current loan, including fees and the choice to reduce EMI or tenure.

Defaults to the current month. First EMI is assumed in the following month.

Estimated net savings
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Use the current outstanding balance. Prepayment happens now, before the next EMI period, subject to lender terms.
01 · GET STARTED

How to use the Loan Prepayment calculator

Enter the current balance, rate and remaining months, then an immediate one-time prepayment and any applicable fees. Choose to retain EMI and shorten repayment, or retain the term and lower EMI. After calculating, select Monthly or Annual above the repayment table. Monthly shows each payment period; Annual groups the same payments by repayment year.

Current balance
Outstanding principal immediately before the prepayment.
Rate and remaining tenure
Constant annual rate and whole months left on the current schedule.
Prepayment
An amount paid now, from zero up to the full outstanding balance.
Fees
Total applicable charges including taxes, paid separately.
Strategy
Keep EMI for earlier completion, or keep the term for a lower payment.
Prepayment effective month
The month this modeled loan, transfer or prepayment starts. Defaults to the current month in India and can be changed.

Select Calculate, review the result and its breakdown, then change one input at a time to compare scenarios.

02 · THE CALCULATION

Formula and calculation method

The original schedule is compared with a schedule after immediately reducing principal by the entered prepayment. For shorter tenure, the original EMI is retained and the final payment may be smaller. For lower EMI, payment is recalculated over the unchanged remaining months. Net savings subtract the prepayment, revised payments and fees from original remaining payments.

Net savings = original remaining payments − prepayment − revised payments − fees
03 · A WORKED EXAMPLE

See the numbers in context

For ₹10,00,000 outstanding at 10% with 120 months remaining, original EMI is ₹13,215. A ₹2,00,000 immediate prepayment, no fee and unchanged EMI clears the remaining loan in 85 months. It saves 35 months and approximately ₹2,67,709 in interest.

Illustrative inputs · rounded to the nearest rupee
04 · MAKE SENSE OF IT

What your result means

Net savings include entered fees, which can outweigh the interest benefit. Revised EMI and months saved distinguish the two strategies. The table follows the reduced balance after the one-time prepayment, rather than treating the original loan as newly sanctioned.

Scenarios worth comparing

  • Change one assumption at a time to understand its effect on payments and total cost.
  • Compare a shorter term with the cash-flow flexibility of a longer term.
  • Use the complete rate and fee quote rather than an advertised starting rate.
05 · KNOW THE LIMITS

Assumptions and limitations

  • Rates are constant nominal annual rates, with monthly reducing-balance interest and month-end EMI payments. At zero interest, EMI equals repayment principal divided by months.
  • The schedule uses exact values internally and rounds displayed rupee amounts. Lender rounding, payment dates and daily accrual may differ.
  • Only the entered upfront fees are included. Tax benefits, rate resets, missed payments, future fees and insurance are excluded.
  • Charges and permission to transfer or prepay depend on your contract and applicable rules. The tool does not determine lender eligibility or fee legality.
  • The first EMI is assumed in the month after the selected effective month, following any education-loan moratorium. End month includes the full repayment term; a prepayment can bring it forward. Calendar choices do not change the modeled EMI or interest.
Official reference RBI guidance on rate resets for EMI-based loans ↗ Supporting guidance checked 11 October 2026. Follow the stated calculator year and scope.
06 · COMMON QUESTIONS

Frequently asked questions

How is this different from Home Loan Prepayment?

This tool compares an immediate one-time payment and explicitly includes fees and the EMI-versus-tenure choice. Use the home-loan tool for its mortgage-specific repayment scenarios.

Which strategy saves more interest?

With the same prepayment and constant rate, keeping EMI usually clears principal sooner and avoids more interest. Lower EMI releases monthly cash instead.

Can I repay the entire balance?

Yes. A prepayment equal to the balance ends the modeled loan immediately. Net savings are the original remaining interest less entered fees.

Educational estimates only. Verify inputs, applicable rules and product terms before making decisions. Read the disclaimer.