Loan Prepayment Calculator

Find interest savings and tenure reduction by prepaying lumpsum amounts or monthly top-ups on loans.

Parameters
₹
%
Yrs
₹ Mo
Calculated Results
Interest Amount Saved -
Tenure Saved - Months early
New Total Interest -
Visual Projection
Invested
Corpus
Yearly Breakdowns
YearOpening BalanceEMI PaidPrepaymentsInterest PaidPrincipal PaidClosing Balance
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The Leverage of Loan Prepayment

Adding regular pre-payments reduces your principal balance, lowering interest compound growth and saving thousands in interest payout.

Formula & Mathematical Approach

Simulates how extra payments accelerate loan payoff and save interest.

Interestm=Outstanding Principalm−1×Annual Rate12×100\text{Interest}_m = \text{Outstanding Principal}_{m-1} \times \frac{\text{Annual Rate}}{12 \times 100}
Principal Paidm=EMI+Prepaymentm−Interestm\text{Principal Paid}_m = \text{EMI} + \text{Prepayment}_m - \text{Interest}_m
Show Plain Text / Excel Formula 
Interest (Month m) = Outstanding Principal * (Annual Rate / 12 / 100)
Principal Paid = EMI + Prepayment - Interest

Key Assumptions

  • Prepayments are applied immediately to reduce the outstanding principal.
  • No prepayment penalties or service fees.