EMI Calculator with Prepayment
Calculate your EMI — then see how much interest you save by prepaying. One-time bonus payment, recurring monthly extra, or both. Updated for 2026 Indian banks.
Loan details
Enter your loan figures. We compute the EMI, total interest, and a prepayment scenario if you turn it on.
| Without prepayment | With prepayment | |
|---|---|---|
| EMI | ₹0 | ₹0 |
| Total interest | ₹0 | ₹0 |
| Total months | 0 | 0 |
| Total payout | ₹0 | ₹0 |
Repayment schedule
Year-by-year breakdown of how your EMI splits between interest and principal. With prepayment, you can compare both schedules side-by-side.
| Year / Month | EMI paid | Interest | Principal | Balance |
|---|
How EMI math actually works
The formula
EMI = P × r × (1+r)n / ((1+r)n − 1)
Where P = loan principal, r = monthly rate (annual/12/100), n = total months. The formula assumes interest compounds monthly, which is how most Indian retail loans work.
How prepayment helps
Each month, your EMI is split: interest first, principal second. Early in the tenure, 70–90% of your EMI is just interest. A prepayment goes directly to principal, slashing the base on which all future interest is calculated.
Reduce tenure vs reduce EMI
Most banks default to tenure reduction on prepayment (cuts interest more). Some offer EMI reduction instead. This calculator models tenure reduction — the better deal in 95% of cases.
Floating-rate home loans
Banks cannot charge prepayment penalty on floating-rate home loans (RBI rule, 2014 onwards). Personal loans usually have a 2–5% penalty — check your sanction letter before prepaying.
Best month to prepay
Earlier is better — the interest base is highest in year 1 to year 5. Prepaying ₹1L in month 6 saves much more interest than prepaying ₹1L in month 60.
Tax angle
Home loan interest deduction (Sec 24, max ₹2L/year) reduces your real cost. If your effective tax rate is 30%, ₹2L interest costs you only ₹1.4L — reducing the urgency to prepay aggressively. Use tax calculator to check.