About the Loan Prepayment Calculator
What is the Loan Prepayment Calculator?
Prepaying part of your loan every year — from a bonus or savings — cuts the principal on which interest is charged, so the loan closes years earlier and total interest falls sharply.
Enter the outstanding principal, rate, remaining tenure and the amount you will prepay each year. This loan prepayment calculator keeps your EMI unchanged and shows the interest saved, months saved and the new tenure.
How to use the Loan Prepayment Calculator
- Outstanding Principal (₹) (sample: 25,00,000)
- Interest Rate (% per year) (sample: 8.4)
- Remaining Tenure (Years) (sample: 15)
- Annual Prepayment (₹) (sample: 1,00,000)
- Press Analyze Prepayment (results also refresh as you type). The result card shows the Interest Saved, along with Months Saved, Revised Tenure, Current EMI and Interest Without Prepayment.
Formula used
Interest saved = Interest without prepayment − Interest with yearly prepayments
- Prepayment = applied once a year directly to principal; EMI stays the same
Because the EMI stays the same, every prepayment shortens the remaining tenure.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Outstanding Principal (₹) | 25,00,000 |
| Interest Rate (% per year) | 8.4 |
| Remaining Tenure (Years) | 15 |
| Annual Prepayment (₹) | 1,00,000 |
| Result | Value |
|---|---|
| Interest Saved | ₹7,67,586 |
| Months Saved | 68 |
| Revised Tenure | 9y 4m |
| Current EMI | ₹24,472 |
| Interest Without Prepayment | ₹19,04,990 |
| Interest With Prepayment | ₹11,37,403 |
Tips for using the Loan Prepayment Calculator
- Prepay early in the loan — that is when it saves the most interest.
- Keep an emergency fund before prepaying.
- Compare the saving with the post-tax return you could earn by investing the money.