See how extra loan payments reduce your repayment tenure and total interest paid. Compare standard vs prepayment scenarios side-by-side instantly.
Compare total interest paid and loan tenure with and without extra payments.
Enter your loan details and extra payment amount to see how much you can save on interest and reduce your loan tenure.
| Scenario | Monthly Payment | Tenure | Total Interest | Total Paid |
|---|---|---|---|---|
| Calculate to see results | ||||
Choose USD, INR, or GBP from the header to view all amounts in your preferred currency.
Input your loan amount, interest rate, and original tenure in years.
Set the extra monthly payment amount you plan to contribute toward principal reduction.
Instantly see interest savings, tenure reduction, and side-by-side comparison with standard loan.
Loan prepayment means paying more than your scheduled monthly installment (EMI) to reduce the principal balance faster. This strategy reduces total interest paid and shortens the loan repayment period, allowing you to become debt-free sooner.
This calculator compares two scenarios: (1) Standard loan with regular EMI payments over the original tenure, and (2) Accelerated repayment with extra monthly payments applied directly to principal. By simulating month-by-month amortization, we calculate the reduced tenure, total interest paid in each scenario, and the difference between them.
Standard EMI: EMI = [P × r × (1 + r)n] / [(1 + r)n - 1]
where P = principal, r = monthly interest rate, n = number of months.
With Prepayment: Each month, extra payment reduces outstanding principal before next month's interest calculation. The loan pays off when remaining principal reaches zero, which typically happens before the original tenure ends.
Reduce total interest paid by tens of thousands over the loan lifetime through disciplined extra payments.
Shorten your loan tenure by years, allowing you to own your asset sooner and redirect funds to other goals.
Build equity faster and improve your financial position for refinancing or leveraging opportunities.
Lower outstanding debt improves peace of mind and reduces financial vulnerability during emergencies.
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