Interest saved by prepaying/part-paying. The Loan Prepayment Calculator takes outstanding principal, interest rate, months left on the loan, prepayment amount and returns interest saved by keeping the same emi plus new remaining term at the same emi, current emi, new emi if you keep the same term instead. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
The headline interest rate is only part of what a loan costs: fees, the structure of repayments and how the rate is quoted (flat or reducing) all change the true cost. Compare offers on total interest and effective rate, not on EMI alone. Use the worked example below to check the maths against your own figures.
How the Loan Prepayment Calculator works
You can use a prepayment to shorten the loan (keep the EMI) or to lower the EMI (keep the term). Shortening saves far more interest; the calculator shows both.
Worked example
With the example values (outstanding principal of ₹2,000,000, interest rate of 9%, months left on the loan of 180 months, prepayment amount of ₹300,000), the interest saved by keeping the same emi is ₹662,865.77; new remaining term at the same emi 11 years 1 month, current emi ₹20,285.33, new emi if you keep the same term instead ₹17,242.53. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is interest saved by keeping the same emi calculated?
keeping the EMI: new term = months to repay (principal − prepayment) at the same EMI; interest saved = old total interest − new total interest.
Which figures do I need?
Outstanding principal, interest rate, months left on the loan, prepayment amount. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Does the result include fees and charges?
Only where there is a fee input. Processing fees, insurance and prepayment charges add to the true cost; the APR and loan comparison calculators include them.
