How to use Loan Prepayment Calculator
An additional payment reduces the balance used to calculate future interest. This calculator keeps the original EMI and can add a recurring extra amount, a one-time payment, or both. The final payment can be smaller than the regular payment.
Treat the outstanding amount and remaining duration as the starting loan. The comparison is against repaying that balance with the calculated EMI and no extra payment. It assumes the lender reduces the term rather than lowering the EMI.
The formula
A worked example
Outstanding loan amount (₹): 1000000 · Annual rate (%): 8.5 · Duration (months): 120 · Extra payment each month (₹): 5000 · One-time extra payment (₹): 0 · Apply after instalment number: 1
Interest saved: ₹1,99,228.66
Recurring extras start in month one. A one-time payment is applied after the selected instalment and never exceeds the remaining balance. Assumes a fixed rate, shorter term and no prepayment fee.
Questions about this calculation
Is a one-time prepayment included?
Yes. Enter the amount and the instalment after which it is paid. You can also keep or remove the recurring monthly extra payment.
Why does my lender show different savings?
Prepayment dates, fees, rate changes and a choice to reduce the EMI rather than the term can change the outcome.
Formula checks: 2026-10-08. Assumptions & corrections.