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Loan EMI With Prepayment Calculator

Work out loan emi with prepayment instantly with clear inputs, formula shown and shareable results.

About Loan EMI With Prepayment Calculator

A prepayment goes straight against principal, so every future month's interest is charged on a smaller balance. Keeping the EMI unchanged shortens the tenure, and the interest saved compounds with each additional prepayment.

Formula

Monthly roll-forward

Balance = Balance + Balance·r - (EMI + extra when due)

r
Monthly rate

Worked example

With the default values below, Loan EMI With Prepayment Calculator returns Interest Saved of $1,607,755.20. Change any input above and every figure here is recalculated in your browser.

Inputs used

Loan Amountminimum 0
3,000,000
Annual Interest Rateaccepts 0–100 %
9 %
Original Tenure In Yearsaccepts 1–40
20
Extra Payment Each Yearminimum 0
100,000

Results

Interest Saved
$1,607,755.20
Months Saved
100
Revised Tenure
11.67 years
Total Interest With Prepayment
$1,870,271.68

Step by step

  1. 1Values used
  2. 2Monthly roll-forward
  3. 3Interest Saved= 1,607,755.20
  4. 4Months Saved= 100
  5. 5Revised Tenure= 11.67 years
  6. 6Total Interest With Prepayment= 1,870,271.68

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.

Frequently Asked Questions

Is it better to cut the EMI or the tenure?

Cutting the tenure saves far more interest, because the balance clears sooner. Reducing the EMI mainly improves monthly cash flow.

When do prepayments help most?

Early in the loan, while the outstanding balance and therefore the interest charge are at their highest.

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