01
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Add the original loan amount, interest rate and tenure to set the baseline EMI and interest.
Loan Prepayment Calculator
See the interest you save and how much sooner you finish.
Updated Reviewed by Sajid Hussain· Editor
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Results update in real time as you type — no submit needed.
Your numbers
Loan Prepayment bills sellers in Indian Rupee (INR), so this calculator works in INR — not your selected US Dollar ($). Every figure below matches your real Loan Prepayment statement. Localised USD marketplaces are coming soon.
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Last updated
June 14, 2026
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Loan Tool
What Is a Loan Prepayment Calculator?
A loan prepayment calculator shows how much interest you save by paying extra towards a loan — and compares the two choices your lender offers: reduce the tenure to finish sooner, or reduce the EMI to lower the monthly payment.
**It compares tenure reduction and EMI reduction.** The same prepayment can shorten the loan or lighten the EMI. The calculator works out both, so you can see that tenure reduction almost always saves more interest.
**It rewards prepaying early.** Because interest is front-loaded, a prepayment in the first years removes principal that would otherwise accrue interest for the whole remaining tenure. The "prepay after" input shows how timing changes the saving.
**It handles lump sums and extra EMIs.** Model a one-time prepayment from a bonus, a small extra every month, or both. Even one extra EMI a year can cut years off a long loan.
**It simulates the loan month by month.** Rather than a rough estimate, it runs the actual reducing-balance schedule with your prepayment applied, so the interest saved and the new payoff date are exact.
Quick facts
- Compares
- Tenure vs EMI cut
- Saves most
- Reduce tenure
- Best timing
- Prepay early
- Handles
- Lump + extra EMI
- Basis
- Reducing balance
- Free to use
- No sign-up needed
How It Works
See Your Prepayment Saving in Three Steps
02
Add your prepayment
Enter a one-time lump sum and/or an extra amount each month, and when you make it.
03
Choose tenure or EMI
Pick reduce-tenure or reduce-EMI and see the interest saved, the new tenure, and the new EMI.
Steps to use the Loan Prepayment Calculator: Enter your loan, Add your prepayment, Choose tenure or EMI.
How It Works
How the Prepayment Saving Is Worked Out
01
Reduce tenure
Keep EMI fixed; apply extra to principal → payoff sooner
The loan is run month by month at the original EMI with the prepayment applied. The balance clears earlier, so total interest falls.
Example: ₹5L after 1 yr → finishes 75 months early
02
Reduce EMI
New EMI = recompute over the same remaining months
The lump sum cuts the balance, then the EMI is recalculated to clear the smaller balance over the original remaining tenure.
Example: ₹5L → EMI falls ₹26,992 → ₹22,407
03
Interest saved
Saved = interest without prepayment − interest with it
The baseline total interest minus the new total interest is what the prepayment saves you.
Example: ₹34.78L − ₹19.29L = ₹15.49L (tenure)
Worked Example
Walkthrough (₹30L at 9%, 20 yr, prepay ₹5L after 1 year)
Currency note: the example below uses a benchmark scenario priced in Indian Rupee (INR). Values are converted to US Dollar (USD) at the latest exchange rate so you can compare against your own numbers.
Scenario
A ₹30 lakh loan at 9% over 20 years, with a ₹5 lakh lump sum prepaid after 1 year, reducing the tenure.
1
Step 1 · The baseline
Without prepaying, the $26,992.00 EMI runs the full 20 years.
Baseline interest = $3,478,027.00
2
Step 2 · Prepay and keep the EMI
The ₹5 lakh cuts the principal; the same EMI now clears it sooner.
New tenure = $13.75 years
3
Step 3 · The saving
Interest falls to $1,929,222.00 — the difference is what you save.
Interest saved = $1,548,805.00
The takeaway
Prepaying ₹5 lakh after one year and reducing the tenure saves $1,548,805.00 and ends the loan $75.00 months early. Reducing the EMI instead would save only about ₹5.45 lakh — so tenure reduction wins by roughly ₹10 lakh here.
Tenure vs EMI
Interest Saved on ₹30L at 9% (₹5L Prepaid After 1 Year)
| Metric | Poor | Average | Good | Excellent |
|---|---|---|---|---|
Reduce tenure Keeps EMI, ends 75 months early | ~₹15.49 lakh | |||
Reduce EMI Keeps tenure, EMI down ~₹4,584 | ~₹5.45 lakh | |||
Prepay timing (same ₹5L) Front-loaded interest | Earlier saves more |
Comparison
Calcrux vs Bank vs Generic Calculators
| Feature | Calcrux (Free) | Bank Calculator | Generic |
|---|---|---|---|
| Interest saved by prepaying | |||
| Reduce-tenure vs reduce-EMI compared | |||
| Lump sum and extra-monthly together | |||
| Timing of the prepayment matters | |||
| Month-by-month simulation | |||
| No sign-up or lead capture | |||
| Free |
Common Mistakes
Prepayment Mistakes to Avoid
Reducing the EMI instead of the tenure
Why it matters
Reducing the EMI feels good monthly but saves far less interest than keeping the EMI and shortening the tenure.
Fix
If the EMI is affordable, choose tenure reduction — the calculator shows how much more it saves.
Prepaying late in the loan
Why it matters
By the later years most interest has already been paid, so a prepayment then saves comparatively little.
Fix
Prepay as early as you can; the calculator shows the saving falling as the prepayment year rises.
Assuming the EMI auto-reduces
Why it matters
Most lenders keep the EMI and shorten the tenure unless you request a recalculation in writing.
Fix
Decide your strategy first, then instruct the bank explicitly if you want the EMI reduced.
Ignoring prepayment charges
Why it matters
Fixed-rate and some non-home loans levy a prepayment or foreclosure fee that eats into the saving.
Fix
Check the fee in your sanction letter and net it off against the interest the calculator shows you save.
Emptying your emergency fund to prepay
Why it matters
Locking all spare cash into the loan leaves you exposed to job loss or emergencies.
Fix
Keep 3–6 months of expenses aside; prepay only the surplus beyond your safety buffer.
Pro Tips
Prepay Smarter
Reduce tenure, not EMI
Keep the EMI the same and shorten the loan — it eliminates the most interest over the life of the loan.
Prepay in the early years
Because interest is front-loaded, an early prepayment saves far more than the same amount paid later.
Add one extra EMI a year
A single extra EMI annually, from a bonus, can shave several years off a long home loan.
Use windfalls wisely
Direct bonuses, tax refunds and maturities to the principal early — small lumps compound into big savings.
Confirm zero charges first
Floating-rate home loans have no prepayment fee, but confirm for fixed-rate or other loans before a big prepayment.
Who Uses This
Who Uses This Loan Prepayment Calculator
The Loan Prepayment Calculator works across every stage of the workflow.
Home loan borrowers
Someone with a bonus checks how much interest a ₹5 lakh prepayment saves and how many years it cuts.
Borrowers weighing tenure vs EMI
A borrower compares reducing the tenure against reducing the EMI to decide which to ask the bank for.
Disciplined savers
Someone paying a small extra each month sees how much sooner the loan will be cleared.
Prepay-vs-invest deciders
A borrower compares the guaranteed saving from prepaying against expected investment returns.
Car and personal loan holders
A borrower checks the interest saved against any foreclosure fee before paying a loan off early.
Glossary
Key Prepayment Terms
Every important term you'll encounter in this calculator and the broader topic.
- Prepayment
- Paying more than your scheduled EMIs towards the principal, which reduces the outstanding balance and the interest that accrues on it.
- Part-payment
- A prepayment of only part of the outstanding balance, as opposed to clearing the whole loan (foreclosure).
- Reduce Tenure
- Keeping the EMI the same after a prepayment so the loan ends sooner — the option that saves the most interest.
- Reduce EMI
- Keeping the original end date after a prepayment and lowering the monthly EMI instead — easier on cash flow, less interest saved.
- Foreclosure
- Paying off the entire outstanding loan balance in one go, ending the loan before its scheduled tenure.
- Front-loaded Interest
- The reducing-balance feature where early EMIs are mostly interest, which is why prepaying early saves the most.
Help & answers
Frequently asked questions
Everything you need to know about how the Loan Prepayment Calculator works.
01What is a loan prepayment calculator?
It shows how much interest you save by prepaying a loan — a one-time lump sum and/or extra each month. It compares the two outcomes lenders offer: reducing the tenure (finish sooner) or reducing the EMI (lower monthly payment).
02Should I reduce the tenure or the EMI after prepaying?
Reducing the tenure saves more interest, because you keep paying the same EMI while the principal falls faster. Reducing the EMI eases monthly cash flow but saves less. If the EMI is comfortable, choose tenure reduction.
03How much interest does prepayment save?
It depends on the amount and timing. For example, prepaying ₹5 lakh after one year on a ₹30 lakh, 9%, 20-year loan saves about ₹15.5 lakh and ends the loan 6 years early — if you reduce the tenure rather than the EMI.
04Why does prepaying early save more?
Because interest is front-loaded — early EMIs are mostly interest. A prepayment in the first years removes principal that would otherwise accrue interest for the whole remaining tenure, so it saves far more than the same amount later.
05Does part-payment reduce the EMI or the tenure?
By default, most lenders keep the EMI the same and shorten the tenure after a part-payment. If you want the EMI reduced instead, you usually have to request a recalculation in writing — otherwise tenure reduction applies.
06Is a lump sum or extra monthly payment better?
Both help. A lump sum makes a big one-time dent, while a small extra every month steadily shortens the tenure. Even one extra EMI a year can cut years off a long loan. The calculator handles either or both.
07Are there prepayment charges on a home loan?
For floating-rate home loans to individuals, RBI bars prepayment and foreclosure charges. Fixed-rate loans and some other loans may levy a fee — check your sanction letter before a large prepayment.
08Should I prepay or invest the money instead?
Prepaying gives a guaranteed return equal to your loan rate (say 9%). If an investment reliably beats that after tax, investing may win; if not, prepaying is the safer, tax-free saving. Weigh both against your risk appetite.
09Does prepayment affect my home loan tax benefit?
Prepaying lowers future interest, so the Section 24(b) interest deduction shrinks over the shorter or lighter loan. The interest saved usually far outweighs the smaller deduction — but factor it in if you are at the ₹2 lakh cap.
10Can I prepay a car or personal loan too?
Yes. The same maths applies to any reducing-balance loan. Personal and car loans may carry prepayment or foreclosure charges, so confirm the fee and compare it against the interest you would save.
11What is loan foreclosure?
Foreclosure is paying off the entire outstanding balance in one go, ending the loan early. A part-prepayment is paying only a portion. This calculator models part-prepayment; a full foreclosure simply clears the remaining balance.
12Is this loan prepayment calculator free and accurate?
Yes — it is free, needs no sign-up, and simulates the loan month by month on a reducing-balance basis. Confirm any prepayment charges and your lender's recalculation policy before acting on the numbers.
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