Loan Prepayment Calculator
Find out how much interest and how many months you save by paying a little extra every month, or a lump sum now.
Loan Prepayment Calculator
Interest saved
₹6,43,969.13
that is about 6.44 lakh
- Months saved44
- New tenure (months)136
- Interest without prepaying₹23,17,592.97
- Interest after prepaying₹16,73,623.84
Works out in your browser. Nothing you type is sent anywhere.
In short: Loan Prepayment Calculator
On a ₹30,00,000 balance at 8.5% with 180 months left, paying ₹5,000 extra each month saves ₹6,43,969.13 and clears the loan 44 months early. Interest falls from ₹23,17,592.97 to ₹16,73,623.84, because every extra rupee stops earning the lender interest from the day it lands.
What is Loan Prepayment?
Prepaying a loan means paying more than the instalment due, so the extra goes straight against the outstanding balance and stops earning the lender interest.
How is Loan Prepayment calculated?
There is no single closed formula here, because the answer depends on the order of payments. The tool walks the loan month by month: it charges interest on the balance, takes off the instalment and anything extra, and repeats until nothing is left. That is exactly how a bank amortises a loan.
- balancewhat is still outstanding at the start of the month
- ithe interest rate for one month, as a decimal
A worked example
| Outstanding loan amount | ₹30,00,000 |
|---|---|
| Interest rate (% a year) | 8.5% |
| Months left | 180 months |
| Extra you pay every month | ₹5,000 |
| One-time prepayment now | ₹0 |
| Result | |
| Interest saved | ₹6,43,969.13 |
| Months saved | 44 |
| New tenure (months) | 136 |
| Interest without prepaying | ₹23,17,592.97 |
| Interest after prepaying | ₹16,73,623.84 |
Every figure in this table is produced by the same calculation the tool above runs.
How to use this loan prepayment calculator
- Enter what is still outstanding, which is on your latest statement.
- Enter the rate and the number of months still to run.
- Add the extra you could pay each month, a lump sum today, or both.
- Read the interest saved and the months saved, then check the new tenure.
Questions people ask
Does prepaying reduce the EMI or the tenure?
By default most lenders keep the EMI the same and shorten the tenure, which is what saves the most interest. Some will reduce the EMI instead if you ask, which keeps the closing date and saves less. This tool assumes the tenure shortens.
Is a lump sum better than paying extra every month?
A rupee paid earlier always saves more than the same rupee paid later, so a lump sum today beats the same amount spread over a year. Regular extra payments win when you cannot free up a large sum at once. Try both boxes to compare them on your own loan.
Will the bank charge me for prepaying?
On a floating-rate home loan taken by an individual, lenders are not permitted to charge a prepayment penalty. Fixed-rate loans and most personal and car loans can carry a foreclosure fee. Check your agreement before planning a large prepayment.
Should I prepay the loan or invest the money instead?
Prepaying earns you a certain return equal to your loan rate, while investing offers an uncertain and usually higher one. Compare the loan rate here with what you would realistically earn after tax. Many people split the difference and do some of each.
Accuracy and sources
Estimate only. Not financial or tax advice.
Checked by the Daytoolz team on 16 October 2026. How we check our tools.
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