EMI Calculator with Prepayment
Work out your loan EMI, then see what paying a little extra each month saves you.
How to use the EMI Calculator with Prepayment
- Enter your loan amount, rate and tenure.
- Add how much extra you can pay each month.
- See the interest and time the prepayment saves.
EMI = P·r·(1+r)^n / ((1+r)^n − 1), amortised monthly with any extra payment applied to principal
About the EMI Calculator with Prepayment
This calculator first works out your standard EMI — the fixed monthly instalment — using EMI = P·r·(1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r the annual rate divided by 12, and n the tenure in months. It then does what a plain EMI tool cannot: it amortises the loan month by month, taking the interest on the outstanding balance first and putting the rest against principal, once at the normal payment and once with your extra payment added on top. Comparing the two runs shows how much interest the prepayment saves and how many months earlier the loan clears.
That interest-saved figure is the whole point. Because early payments are mostly interest, even a small regular extra amount can knock a surprising slice off both the total cost and the term — here you see it in money and months rather than vague reassurance. If you enter a 0% rate, it simply divides the principal evenly across the months.
What it does not account for: it assumes one fixed rate with interest compounded monthly. Real loans may add processing fees, insurance or a different day-count convention, and some lenders limit prepayment or charge a penalty for it — so check your own loan terms before relying on the saving. For the payment on a home loan see the mortgage calculator, and to see how the same money might grow if invested instead, the compound interest calculator.
Frequently asked questions
How does adding an extra payment save interest?
Each month, interest is charged on the outstanding balance, so anything you pay above the EMI comes straight off the principal. A smaller balance is charged less interest the following month, and the effect compounds — clearing the loan sooner and cutting the total interest paid.
Does the extra payment stay the same every month?
Yes. The calculator assumes you pay the same fixed extra on top of the EMI every month for as long as the loan runs. A single one-off lump sum would save less than the same total spread out as a recurring monthly top-up.
What if my interest rate changes over time?
The calculation assumes a single fixed rate for the whole term. If your loan is on a floating rate, treat the result as a snapshot at today’s rate — a rate change would alter both the EMI and the amount you save by prepaying.
Will my lender let me prepay without a penalty?
That varies by lender and loan type. Some allow free prepayment, others cap how much you can pay early or charge a fee, particularly on fixed-rate loans. Check your agreement, because the calculator assumes prepayment is free.
Does it include fees, insurance or taxes?
No. It works on principal and interest only. Processing fees, insurance premiums and any charges bundled into your loan are extra, so your real cost will be a little higher than the figure shown here.