Loan Prepayment / Part-Payment Savings Calculator
See how much interest and tenure you save by making a part-payment on your loan.
Interest saved
₹16,03,691
Tenure reduced by
48 mo
New total interest
₹38,10,188
A one-time prepayment of ₹5,00,000 in month 12 saves you ₹16,03,691 in interest and shortens your loan by 4 years.
Without prepayment
₹54,13,879
240 months
With prepayment
₹38,10,188
192 months
How this calculator works
A lump-sum prepayment directly reduces your outstanding loan principal, which — since interest is charged only on the remaining balance — reduces every future interest calculation for the rest of the loan. This calculator models a one-time prepayment applied in the month you specify, with your EMI held constant afterward (shortening your tenure rather than lowering your EMI, the standard bank default).
Worked example: on a ₹50,00,000 loan at 8.5% over 20 years, prepaying ₹5,00,000 in month 12 saves roughly ₹16 lakh in total interest and shortens the loan by a full 4 years — a substantial return for a single early payment, purely from avoiding two decades of compounding interest on that amount.