DesiToolkit
Finance

EMI Prepayment Calculator

Calculate interest saved and tenure reduced by making a partial prepayment on your home or car loan.

Advertisement

Ad • 320×50
1,00,0002,00,00,000
%
5%20%
yr
1 yr30 yr
mo
0 mo240 mo
10,00050,00,000

After Prepayment Goal

Original EMI

₹26,035

EMI (unchanged)

₹26,035

Outstanding Balance

₹28,75,309

After Prepayment

₹26,75,309

You Save

Interest Saved

₹6,07,076

Time Saved

2yr 7mo

New remaining tenure: 15 yrs 5 months

* Some banks charge a prepayment penalty (0–2%) on fixed-rate loans. RBI has banned prepayment penalty on floating-rate home loans.

Advertisement

Ad • 300×250
About this tool

How to use EMI Prepayment Calculator

  1. 1Enter your original loan amount, interest rate, and tenure
  2. 2Enter how many months of EMI you have already paid
  3. 3Enter the prepayment amount you plan to make
  4. 4Choose your goal: Reduce Tenure (keep same EMI) or Reduce EMI (keep same tenure)
  5. 5See interest saved and tenure reduction instantly

Frequently Asked Questions

Is it better to reduce EMI or tenure after prepayment?

Reducing tenure saves significantly more interest and gets you debt-free faster. Reducing EMI improves monthly cash flow. If you can manage the same EMI, always choose to reduce tenure.

Can banks charge a prepayment penalty?

RBI has banned prepayment penalty on floating-rate home loans. For fixed-rate home loans and other loans, banks may charge 0–2% penalty. Check your loan agreement before making a prepayment.

When is the best time to make a prepayment?

Early in the loan tenure — in the first few years, most of your EMI goes towards interest. A prepayment at year 2–5 saves far more than the same amount paid at year 15.

Related Tools