How does making extra loan prepayments reduce interest and tenure?

Every extra rupee prepaid goes directly towards reducing the principal loan balance. Because interest is compounded on the remaining principal, early prepayments significantly cut down overall interest and reduce loan tenure by several years.

Home, Car & Personal Loans

Loan EMI & Amortization Calculator

Calculate your exact monthly loan EMI, total interest payable, visual amortization schedules, and evaluate prepayment savings.

Loan EMI & Repayment Calculator

Calculate monthly installment, total payable interest, and prepayment interest savings.

Loan Principal Amount (₹)₹10,00,000

Annual Interest Rate (%)8.75%

Loan Duration15 Years (180 Months)

Extra Monthly Prepayment (₹) (Optional)₹0

Adding even a small extra monthly payment slashes years off your loan tenure and saves lakhs in interest.

Monthly Loan EMI

₹9,994

Payable per month for 180 installments

Total Interest

₹7,99,008

Total Payment (P + I)

₹17,99,008

Principal: 56%Interest: 44%

Why Professionals & Students Choose This Suite

Zero server latency, 100% private in-browser computation, and verified financial & mathematical formulas.

Accurate Amortization Table

Year-by-year and month-by-month principal vs interest repayment breakdown.

Prepayment Impact Engine

See how an annual or monthly extra payment saves lakhs in interest.

AEO & Search Answers

Loan EMI & Repayment FAQs

Everything about loan calculations, interest rates, and prepayment strategies.

EMI is calculated using: EMI = [P × R × (1+R)^N] / [(1+R)^N – 1], where P is principal loan amount, R is monthly interest rate (annual rate / 12 / 100), and N is the loan tenure in months.

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