How to work out savings from a loan prepayment
- Enter the outstanding loan, the rate, and the tenure left or your EMI.
- Add a one-time prepayment, an extra amount each month, or both.
- Choose reduce tenure or reduce EMI, and compare the two schedules.
Examples
₹40 lakh left at 8.5% over 15 years has an EMI of ₹39,389.58 and ₹30,90,125 of interest still to pay. A ₹5 lakh prepayment after the 12th EMI, keeping the EMI, ends the loan 3 years sooner and saves ₹9,39,654 of interest.
The same ₹5 lakh prepayment, keeping the tenure: the EMI falls to ₹34,289.99, and the interest saved is ₹3,56,732.
₹30 lakh at 9% over 15 years with ₹5,000 extra paid every month: the loan ends in 11 years 3 months instead of 15 years and saves ₹6,97,165 of interest.
₹25 lakh still owed at 9% with an EMI of ₹25,000: the tenure left works out at 15 years 6 months.
About this tool
Enter what you still owe, the interest rate and either the tenure left or your EMI. Then add a one-time prepayment after a chosen EMI, an extra amount every month, or both. Choose whether to keep your EMI and shorten the loan, or keep the tenure and lower the EMI. You get the interest saved, the new tenure or EMI, and month-by-month schedules with and without the prepayment.
Common questions
Should I reduce the tenure or the EMI?
Keeping the EMI and shortening the loan saves more interest, because the balance falls faster. Lowering the EMI eases your monthly budget instead. Switch between the two to compare.
Where do I find the outstanding amount?
On your latest loan statement or in your lender's app, as the principal outstanding. Use that rather than the amount you first borrowed.
Why might my lender's figures differ?
Lenders round in their own way, may re-set the EMI only on certain dates, and may charge a fee for prepaying some loans. Ask for the revised schedule before you pay.
Can I enter my EMI instead of the tenure?
Yes. Choose My EMI and the tenure left is worked out from it. An EMI that doesn't cover the month's interest is flagged, because it would never clear the loan.
Is it free to use?
Yes. There's no sign-up, and you can use it as often as you like.
Is my text uploaded anywhere?
No. This tool runs inside your browser, so what you enter stays on your device.
Do I need to install anything?
No. It works in your browser on a computer or a phone.