Loan Prepayment Calculator
Calculate savings from prepaying your loan — see interest saved and tenure reduced.
Loan & Prepayment Details
This calculation is an estimate using the reduce-tenure approach. Actual lender schedules can vary based on processing fees, dates and reducing-balance rules.
Prepayment Report
Not calculatedComparison Schedule
Enter loan details to generate the schedule| Month | Original Balance | Original EMI | New Balance | Savings |
|---|---|---|---|---|
| Your detailed schedule will appear here. | ||||
Report generated by TheProfitEra™ on . Values are calculated using the reducing-balance EMI method with the reduce-tenure prepayment approach.
Compare a loan's original repayment path with a reduce-tenure prepayment scenario to estimate interest savings.
How Does the Loan Prepayment Calculator Work?
The calculator builds an original reducing-balance schedule, applies your prepayment at the selected month and compares the new payoff period and interest total.
Loan Prepayment Calculator Formula
EMI is estimated with the reducing-balance formula; each period's interest equals opening balance × monthly rate, and principal is reduced by the payment and prepayment.
Example Calculation
For a ₹20,00,000 balance at an assumed 8.5% rate over 240 months, a ₹5,00,000 prepayment after 12 months can be compared with the original schedule.
How to Interpret the Result
Compare revised tenure and estimated interest with the original schedule. The result helps you explore whether reducing principal may change the repayment path.
Important Limitations
Actual savings depend on lender rules, fees, taxes, rate changes, prepayment timing, and whether the EMI or tenure is revised after payment.
Benefits of Using a Loan Prepayment Calculator
Quantify possible interest savings before making a prepayment.
See how an additional payment may shorten loan tenure.
Compare original and revised balances in one schedule.
Frequently Asked Questions
Does prepayment always reduce interest?
Reducing principal usually reduces future interest, but fees, taxes and lender rules can affect the net benefit.
What does reduce-tenure mean?
It means the regular EMI is maintained while the lower balance allows the loan to finish sooner.
Can I use this for a home loan?
Yes, it can illustrate a home, personal or other reducing-balance loan, subject to your lender's terms.