Money paid early comes straight off the principal, so every later EMI carries less interest. Choose whether the prepayment shortens the tenure (keeping the EMI) or lowers the EMI (keeping the tenure) and see the interest saved either way.
Original loan amount₹50.00 L
₹
Interest rate8.5%
%
Original tenure20 years (240 mo)
years
EMIs already paid24 mo (2 yrs)
months
One-time prepayment₹5.00 L
₹
Extra amount per EMI₹0
₹
After the prepayment
RESULTS
Interest saved₹14.57 Lof ₹45.80 L left on old path
Tenure cut by3 yrs 9 mo14 yrs 3 mo left instead of 18 yrs
Balance now₹47.92 L₹42.92 L after prepayment
Interest left₹31.23 Lon the new path
Your EMI₹43,391
Prepayment charges: floating-rate loans to individuals carry none; fixed-rate loans may charge 2–4% of the amount — check the sanction letter. Shortening the tenure saves more interest than lowering the EMI for the same prepayment.
OUTSTANDING BALANCE FROM TODAY
Old pathWith the prepayment
Interest, year by year from today
Compare remaining interest and balances between the old and prepaid path| Year | Interest, old path | Interest, new path | Balance, old | Balance, new |
|---|---|---|---|---|
| Year 1 | ₹4,02,813 | ₹3,58,618 | ₹46,74,300 | ₹41,30,105 |
| Year 2 | ₹3,92,394 | ₹3,44,292 | ₹45,46,000 | ₹39,53,703 |
| Year 3 | ₹3,81,053 | ₹3,28,699 | ₹44,06,359 | ₹37,61,708 |
| Year 4 | ₹3,68,710 | ₹3,11,729 | ₹42,54,375 | ₹35,52,743 |
| Year 5 | ₹3,55,276 | ₹2,93,258 | ₹40,88,957 | ₹33,25,307 |
| Year 6 | ₹3,40,655 | ₹2,73,155 | ₹39,08,918 | ₹30,77,768 |
| Year 7 | ₹3,24,741 | ₹2,51,275 | ₹37,12,965 | ₹28,08,349 |
| Year 8 | ₹3,07,420 | ₹2,27,460 | ₹34,99,691 | ₹25,15,115 |
| Year 9 | ₹2,88,569 | ₹2,01,541 | ₹32,67,566 | ₹21,95,962 |
| Year 10 | ₹2,68,051 | ₹1,73,331 | ₹30,14,923 | ₹18,48,600 |
| Year 11 | ₹2,45,720 | ₹1,42,627 | ₹27,39,949 | ₹14,70,533 |
| Year 12 | ₹2,21,415 | ₹1,09,210 | ₹24,40,670 | ₹10,59,049 |
| Year 13 | ₹1,94,961 | ₹72,838 | ₹21,14,937 | ₹6,11,193 |
| Year 14 | ₹1,66,169 | ₹33,252 | ₹17,60,412 | ₹1,23,751 |
| Year 15 | ₹1,34,832 | ₹1,724 | ₹13,74,550 | ₹0 |
| Year 16 | ₹1,00,726 | ₹0 | ₹9,54,582 | ₹0 |
| Year 17 | ₹63,604 | ₹0 | ₹4,97,492 | ₹0 |
| Year 18 | ₹23,202 | ₹0 | ₹0 | ₹0 |
Assumptions & formula
The balance after k EMIs is run month by month at i = rate ÷ 12; the prepayment is deducted from it.
Keep the EMI: months until the balance is zero at the same EMI (+ extra). Keep the tenure: new EMI = balance × i × (1 + i)m ÷ ((1 + i)m − 1) over the months left. Interest saved = interest on the old path − on the new.- A constant rate; the prepayment is applied to principal in full on the day.
Calculators are for information and planning. Outputs depend on the inputs and assumptions you enter and are not a recommendation to buy, sell or hold any security or product. Streetgains Technologies Private Limited is a SEBI Registered Research Analyst (INH000017082); it is not a loan provider, tax adviser or mutual fund distributor.