All calculators
Prepayment planner
Paying extra on a loan? Banks let you either finish sooner or pay a smaller EMI. Here’s what each saves.
Interest saved
Cutting the tenure saves $68.8K in interest
You finish 2 yrs 10 mo early with the same $2,603 EMI. Cutting the EMI instead saves $20.4K and lowers it to $2,426.
Cutting the tenure saves $48.4K more. Cut the EMI only if you need the monthly room.
$
%
yrs
$
1 yrs from now.
$
Only used to cut the tenure; most banks re-fix the EMI only after a lump sum.
Two ways to use the prepayment
Without prepaying you’d pay $325K in interest over 20 yrs.
Interest saved
Cut the EMI to $2,426$20.4K
Cut the tenure by 2 yrs 10 mo$68.8K
Cutting the tenure saves more because the balance stays lower for longer at the same EMI.
Cut tenureCut EMI
Monthly EMI$2.6K$2.43K
Loan ends in17 yrs 2 mo20 yrs
Total interest$256K$304K
What you still owe
Cut tenureCut EMINo prepayment
Years from now
Show the numbers as a table
| Year | No prepayment | Cut tenure | Cut EMI |
|---|---|---|---|
| 0 | $300,000 | $300,000 | $300,000 |
| 1 | $294,029 | $274,029 | $274,029 |
| 2 | $287,531 | $265,763 | $267,973 |
| 3 | $280,458 | $256,766 | $261,381 |
| 4 | $272,760 | $246,974 | $254,207 |
| 5 | $264,382 | $236,316 | $246,398 |
| 6 | $255,263 | $224,717 | $237,899 |
| 7 | $245,337 | $212,091 | $228,649 |
| 8 | $234,535 | $198,350 | $218,582 |
| 9 | $222,778 | $183,395 | $207,624 |
| 10 | $209,981 | $167,117 | $195,698 |
| 11 | $196,054 | $149,401 | $182,718 |
| 12 | $180,895 | $130,119 | $168,591 |
| 13 | $164,397 | $109,132 | $153,215 |
| 14 | $146,440 | $86,290 | $136,479 |
| 15 | $126,896 | $61,430 | $118,265 |
| 16 | $105,625 | $34,372 | $98,440 |
| 17 | $82,473 | $4,922 | $76,863 |
| 18 | $57,275 | $0 | $53,379 |
| 19 | $29,850 | $0 | $27,819 |
| 20 | $0 | $0 | $0 |
How this is calculated
Interest each month is charged on what you still owe at 8.5% ÷ 12. The prepayment goes straight to the balance after that month’s EMI.
cut tenure: same EMI on a lower balance → fewer months
cut EMI: EMI = new balance re-spread over the months left
cut EMI: EMI = new balance re-spread over the months left
Floating-rate home loans in many countries carry no prepayment penalty; fixed-rate loans often do. Penalties and any tax benefit on loan interest aren’t included.