Model prepayments and compare strategies—tenure reduction versus EMI reduction—with interest and time saved.
Interest saved
₹0
Time saved
0 mo
New tenure
20 yr
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This calculator simulates a standard reducing-balance loan with optional recurring and one-time prepayments. It helps you compare two common bank options after you prepay: shorten the loan while keeping EMI, or reduce EMI while keeping the original end date. The amortization view shows how each choice affects interest and payoff timing.
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where r is the monthly rate and n is tenure in months. Monthly interest = opening balance × r; principal = EMI − interest.
Enter principal, annual interest rate, and tenure in months. Add recurring monthly prepayment and/or a one-time prepayment in a specific month. Switch views to compare strategies and read interest saved and schedules.
Equated Monthly Installment is a fixed payment each month toward principal and interest on a reducing-balance loan. Early payments skew toward interest; later payments pay down principal faster.
You keep the same EMI and pay extra toward principal. The loan closes earlier than the original schedule, which usually reduces total interest paid.
Extra principal reduces the balance; the bank may recalculate a lower EMI so the loan still ends on the original date (same remaining tenure).
The calculator assumes one effective annual rate for the whole tenure unless you change inputs. For floating loans, re-run with updated rates as they change.
No—enter principal as disbursed amount after major one-time charges, or add fees mentally. The focus is EMI math and prepayment strategies.
Use these notes to stress-test the calculator, understand what drives the result, and choose the right tool for the decision you are making.
The EMI model assumes a standard reducing-balance loan, one effective annual rate, and prepayments applied exactly as entered. It does not automatically include processing fees, changing benchmark rates, or lender-specific rounding quirks.
For the same loan, a one-time prepayment made in year 2 typically saves more interest than the same amount paid in year 8 because the outstanding principal is much larger earlier in the schedule. That is why early prepayments often look disproportionately powerful.
Tenure reduction usually maximizes interest saved, while EMI reduction improves near-term cash flow. The better choice depends less on math alone and more on whether your priority is debt-free speed or monthly breathing room.
Actual lender statements may differ slightly due to day-count conventions, insurance add-ons, or rate resets. Treat the amortization as a strong planning approximation, then validate major decisions against your lender's repayment schedule.
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