Loan Prepayment Calculator — Interest & Tenure Saved
Making a lump-sum prepayment on your loan directly reduces the outstanding principal, which cuts both the total interest you pay and the number of EMIs left. Enter your current outstanding principal, interest rate, EMI and the amount you plan to prepay to see exactly how much interest and time you save.
🚀 Open the Loan Prepayment Calculator →
Formula
Months to close = −ln(1 − P·r/EMI) / ln(1+r), where P = outstanding principal, r = monthly rate. Interest = EMI × months − principal. Compare before vs after prepayment.
Example
₹10,00,000 outstanding @ 9% with a ₹12,000 EMI, prepaying ₹2,00,000 can save several lakhs in interest and cut the tenure by dozens of months.
Frequently Asked Questions
Is it better to reduce EMI or tenure after prepayment?
Reducing tenure (keeping the same EMI) saves far more interest than reducing the EMI, because you close the loan faster.
Are there prepayment charges?
Floating-rate home loans to individuals have no prepayment penalty in India. Fixed-rate and some personal loans may charge 2%–5%.
Related calculators
- EMI Calculator — Loan EMI, Interest & Schedule
- Home Loan EMI Calculator (2026 rates)
- Loan Balance Transfer Calculator
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