Loan Prepayment Calculator — how much interest a prepayment saves
Enter your loan, a one-time prepayment and when you make it. See the interest saved if you keep the EMI (the loan ends sooner) or keep the tenure (a smaller EMI).
Or keep the tenure, lower the EMI
Interest on the loan, with the same EMI
- Interest you still pay₹26,25,45081%
- Interest saved₹6,22,87719%
How it is calculated
A prepayment goes straight to the principal. Every later month’s interest is then worked out on a smaller balance.
Keeping the EMI the same finishes the loan early and saves the most interest. Lowering the EMI eases the monthly budget but saves less.
Balance after k EMIs, less the prepayment → repay at the same EMI (fewer months) or → new EMI = EMI formula on the balance over the months left
Questions
Should I reduce the EMI or the tenure after a prepayment?
Reducing the tenure saves far more interest. Reduce the EMI only if the monthly amount is hard to manage.
Is there a penalty for prepaying a home loan?
Not on floating-rate home loans taken by individuals — RBI does not allow it. Fixed-rate and some other loans may charge a fee; check with your lender.
When is prepaying most useful?
Early in the loan, when most of each EMI is interest. The same prepayment in year 2 saves much more than in year 15.
Prepay the loan or invest the money?
Prepaying earns your loan rate, risk-free. If you expect to earn clearly more after tax by investing, investing can win — many people split it.
Can Spendly track my loan and prepayments?
Yes. Spendly keeps the loan schedule, marks EMIs paid and shows the effect of a prepayment on what is left.