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Personal Loan Prepayment Calculator

Interest saved by prepaying your personal loan.

₹1,00,000₹40,00,000
6%24%
1 yr6 yr
₹25,000₹10,00,000

Interest saved

₹28,629

Interest without prepayment₹1,32,012
Interest after prepayment₹1,03,383
Tenure reduced by0 yr 5 mo
Interest still payable78%
Interest saved22%

Personal loans can carry 0–4% foreclosure charges depending on the lender — net them off against the savings shown. EMI is assumed unchanged, shortening the tenure.

Why early prepayment on a personal loan is so powerful

Interest accrues on the outstanding balance, so a prepayment early in the tenure — when the balance is at its peak — eliminates the most future interest. The same amount prepaid late in the loan saves only a fraction. Run a couple of timings above and compare the savings.

Frequently asked questions

Should I lower my EMI or shorten the tenure after prepaying?

Keep the EMI and shorten the tenure if you can afford it — that maximises interest saved. Lower the EMI only if monthly cash flow is genuinely tight.

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