Loan prepayment

A lumpsum paid right after one of your EMIs. Lenders let you keep the EMI and finish sooner, or keep the end date and pay a smaller EMI. Both are shown side by side.

Loan amount

₹50 L

Interest rate a year

Original tenure

Tenure in

yearsmonths

Prepayment amount

₹5 L

Paid after EMI number

Counted from the first EMI.

Interest saved by reducing the tenure

₹14,57,163

Without prepayment: EMI ₹43,392 for 240 months, total interest ₹54,13,554.

Reduce tenure

EMI: ₹43,392
Loan runs for: 195 months
Total interest: ₹39,56,391
Interest saved: ₹14,57,163

Reduce EMI

EMI: ₹38,864
Loan runs for: 240 months
Total interest: ₹49,35,868
Interest saved: ₹4,77,686

Outstanding balance

Show data

Outstanding balance: Data behind the chart
Year	No prepayment	Reduce tenure	Reduce EMI
Year 0	₹50,00,000	₹50,00,000	₹50,00,000
Year 1	₹49,00,478	₹49,00,478	₹49,00,478
Year 2	₹47,92,159	₹47,92,159	₹47,92,159
Year 3	₹46,74,266	₹41,30,071	₹41,86,574
Year 4	₹45,45,952	₹39,53,655	₹40,71,657
Year 5	₹44,06,297	₹37,61,646	₹39,46,581
Year 6	₹42,54,297	₹35,52,665	₹38,10,450
Year 7	₹40,88,862	₹33,25,211	₹36,62,287
Year 8	₹39,08,803	₹30,77,653	₹35,01,027
Year 9	₹37,12,829	₹28,08,213	₹33,25,513
Year 10	₹34,99,533	₹25,14,957	₹31,34,485
Year 11	₹32,67,384	₹21,95,780	₹29,26,572
Year 12	₹30,14,714	₹18,48,391	₹27,00,282
Year 13	₹27,39,711	₹14,70,295	₹24,53,989
Year 14	₹24,40,400	₹10,58,780	₹21,85,927
Year 15	₹21,14,633	₹6,10,890	₹18,94,170
Year 16	₹17,60,071	₹1,23,410	₹15,76,624
Year 17	₹13,74,169	₹0	₹12,31,011
Year 18	₹9,54,157	₹0	₹8,54,848
Year 19	₹4,97,019	₹0	₹4,45,436
Year 20	₹0	₹0	₹0

Year 0
No prepayment
₹50,00,000
Reduce tenure
₹50,00,000
Reduce EMI
₹50,00,000
Year 1
No prepayment
₹49,00,478
Reduce tenure
₹49,00,478
Reduce EMI
₹49,00,478
Year 2
No prepayment
₹47,92,159
Reduce tenure
₹47,92,159
Reduce EMI
₹47,92,159
Year 3
No prepayment
₹46,74,266
Reduce tenure
₹41,30,071
Reduce EMI
₹41,86,574
Year 4
No prepayment
₹45,45,952
Reduce tenure
₹39,53,655
Reduce EMI
₹40,71,657
Year 5
No prepayment
₹44,06,297
Reduce tenure
₹37,61,646
Reduce EMI
₹39,46,581
Year 6
No prepayment
₹42,54,297
Reduce tenure
₹35,52,665
Reduce EMI
₹38,10,450
Year 7
No prepayment
₹40,88,862
Reduce tenure
₹33,25,211
Reduce EMI
₹36,62,287
Year 8
No prepayment
₹39,08,803
Reduce tenure
₹30,77,653
Reduce EMI
₹35,01,027
Year 9
No prepayment
₹37,12,829
Reduce tenure
₹28,08,213
Reduce EMI
₹33,25,513
Year 10
No prepayment
₹34,99,533
Reduce tenure
₹25,14,957
Reduce EMI
₹31,34,485
Year 11
No prepayment
₹32,67,384
Reduce tenure
₹21,95,780
Reduce EMI
₹29,26,572
Year 12
No prepayment
₹30,14,714
Reduce tenure
₹18,48,391
Reduce EMI
₹27,00,282
Year 13
No prepayment
₹27,39,711
Reduce tenure
₹14,70,295
Reduce EMI
₹24,53,989
Year 14
No prepayment
₹24,40,400
Reduce tenure
₹10,58,780
Reduce EMI
₹21,85,927
Year 15
No prepayment
₹21,14,633
Reduce tenure
₹6,10,890
Reduce EMI
₹18,94,170
Year 16
No prepayment
₹17,60,071
Reduce tenure
₹1,23,410
Reduce EMI
₹15,76,624
Year 17
No prepayment
₹13,74,169
Reduce tenure
₹0
Reduce EMI
₹12,31,011
Year 18
No prepayment
₹9,54,157
Reduce tenure
₹0
Reduce EMI
₹8,54,848
Year 19
No prepayment
₹4,97,019
Reduce tenure
₹0
Reduce EMI
₹4,45,436
Year 20
No prepayment
₹0
Reduce tenure
₹0
Reduce EMI
₹0

Assumptions

Every rate used in this calculation. Change any of them and the result updates.

Prepayment penalty

Lenders may not charge individuals a penalty on floating-rate loans taken for non-business purposes. Fixed-rate and business loans can differ.

How this is calculated

Penalty = penalty rate × amount prepaid, deducted from the interest saved. Reduce EMI recalculates the EMI on the reduced balance over the remaining months, rounded up to the rupee.