Work out part payment benefit instantly with clear inputs, formula shown and shareable results.
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.
Revised tenure
n' = -ln(1 - (B - part)·r/EMI)/ln(1+r)
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.
Keeping the EMI and cutting the tenure saves considerably more interest.
Some cap the number or size of part payments each year, and a few charge a fee — check the sanction letter.