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Part Payment Benefit Calculator

Work out part payment benefit instantly with clear inputs, formula shown and shareable results.

About Part Payment Benefit Calculator

A part payment reduces principal immediately while the EMI stays the same, so a bigger slice of every future instalment attacks principal. The tenure shortens and the interest saved is usually a multiple of the amount paid in.

Formula

Revised tenure

n' = -ln(1 - (B - part)·r/EMI)/ln(1+r)

B
Balance
r
Monthly rate

Worked example

With the default values below, Part Payment Benefit Calculator returns Interest Saved of $640,448.51. Change any input above and every figure here is recalculated in your browser.

Inputs used

Outstanding Balanceminimum 0
2,000,000
Annual Interest Rateaccepts 0–100 %
8.8 %
Months Remainingaccepts 1–400
180
Part Payment Amountminimum 0
300,000

Results

Interest Saved
$640,448.51
Months Removed From The Tenure
46.9
Revised Months Remaining
133.1
EMI (Unchanged)
$20,048.07

Step by step

  1. 1Values used
  2. 2Revised tenure
  3. 3Interest Saved= 640,448.51
  4. 4Months Removed From The Tenure= 46.9
  5. 5Revised Months Remaining= 133.1
  6. 6EMI (Unchanged)= 20,048.07

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

Should the EMI or the tenure be reduced?

Keeping the EMI and cutting the tenure saves considerably more interest.

Do lenders limit part payments?

Some cap the number or size of part payments each year, and a few charge a fee — check the sanction letter.

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Part Payment Benefit Calculator – Calculate Interest Saved