Loan Prepayment Calculator
How much interest a part-prepayment saves, and whether to cut the EMI or the tenure. Works for home, car and personal loans.
How to use the Loan Prepayment calculator
- Enter outstanding loan, interest rate, months remaining, prepayment amount and after prepaying, reduce.
- Read the interest saved at the top of the result, with current EMI, new EMI, new tenure underneath. It updates as you type.
- Change one input at a time to see what moves the answer most, then save the result with Copy link or Download PDF.
About this tool
Prepaying early in a loan saves the most because interest is charged on the outstanding balance. Reducing tenure saves more interest; reducing EMI frees monthly cash.
Worked example
With outstanding loan of ₹30,00,000, interest rate of 8.5%, months remaining of 180, prepayment amount of ₹3,00,000 and after prepaying, reduce of Tenure (keep EMI):
| Interest saved | ₹6,54,852 |
| Current EMI | ₹29,542 |
| New EMI | ₹29,542 |
| New tenure | 12 yrs 4 mo |
| Tenure cut by | 2 yrs 8 mo |
Built and reviewed by Savitar Finance (savitarfinance@gmail.com). Rules and rates last checked October 2026. How we calculate · Report a problem
Questions people ask
Is it better to reduce EMI or tenure after prepayment?
Reducing tenure saves more interest. Reduce the EMI only if you need the monthly cash flow.
Are there charges for prepaying a home loan?
RBI does not allow foreclosure or prepayment charges on floating-rate loans to individuals. Fixed-rate loans may carry a charge.