Personal Loan Prepayment Calculator
See how a lump-sum prepayment cuts your loan. Enter your outstanding balance, rate, remaining tenure and the amount you want to prepay to find your interest saved and reduced tenure.
How does loan prepayment save you money?
A prepayment is an extra lump-sum payment toward your loan's principal, over and above your regular EMIs. Because personal loans use reducing-balance interest, cutting the principal early means interest is charged on a smaller balance — so you either finish the loan sooner or pay less interest overall. This tool keeps your EMI the same and shows how much sooner the loan ends.
2. Keeping the same EMI, the loan now clears in fewer months — the interest you avoid on that reduced balance is your saving
What affects your savings?
A larger lump sum cuts more principal and saves more interest.
Prepaying earlier in the tenure saves far more than prepaying near the end.
The higher your rate, the more each prepayment is worth in saved interest.
Frequently asked questions
This calculator keeps your EMI the same and reduces the tenure, which maximises interest saved. Many lenders also let you keep the tenure and lower the EMI instead — ask your lender which options they allow.
Some lenders charge a prepayment or foreclosure fee (often a percentage of the amount prepaid), while others allow it free after a lock-in period. Check your loan agreement before prepaying.
Earlier in the tenure, when most of your EMI still goes toward interest. Prepaying in the first half of the loan typically saves significantly more than prepaying near the end.
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