Loan Prepayment Calculator

A loan prepayment is a lump-sum payment toward your outstanding principal, over and above your regular EMI. Reducing the principal cuts total interest dramatically. You can choose to keep the tenure and lower the EMI, or — usually far better — keep the EMI and shorten the tenure.

Prepayment shrinks the principal; you choose how to take the benefit:

New principal = outstanding − prepayment

Option 1 (same tenure, lower EMI):
  Recompute EMI on new principal at original rate.

Option 2 (same EMI, shorter tenure) ← best:
  Solve for n in the EMI formula on new principal.
  Interest saved ≈ original total interest − new total interest.

Enter your outstanding loan amount, interest rate, remaining tenure, and the lump sum you plan to prepay. The calculator shows both outcomes: how much the EMI drops (tenure held) and how many months you save (EMI held), plus total interest saved.