Personal Loan Prepayment Calculator

Check what a part payment saves on a personal loan, and whether the foreclosure charge eats the benefit.

Interest you save
₹40,292
and finish 1 yr 2 mo earlier
Prepaying ₹50,000 in month 12 plus ₹2,000 extra each month clears the loan in 2 yr 10 mo instead of 4 yr, saving ₹40,292 in interest.
EMI (unchanged)₹10,831
Original tenure4 yr
New tenure2 yr 10 mo
Interest without prepayment₹1,19,865
Interest with prepayment₹79,573
Total saving₹40,292

About the Personal Loan Prepayment Calculator

Personal loans carry the highest rates of any mainstream loan, so prepaying them first is almost always the right call when you have spare cash and several debts.

The one thing to check is the charge. Most personal loans are fixed-rate, which puts them outside the RBI's prohibition on prepayment fees, so lenders commonly levy 2–5% of the amount prepaid. Compare that against the interest saved above before you commit.

The formula

The schedule is rebuilt month by month with the prepayment applied directly to principal
Part paymentA lump sum that reduces the outstanding balance
Extra EMIAn additional amount added to every instalment

Because interest is charged on the reducing balance, every rupee of prepayment stops all future interest on that rupee.

Things worth knowing

1
Clear your highest-rate debt first — personal loans and card balances before a home loan.
2
Fixed-rate personal loans often carry a 2–5% part-payment charge. Ask for it in writing before paying.
3
Some lenders only allow part payment once a year, in multiples of the EMI.

Frequently asked questions

Most lenders allow it after 6–12 EMIs, sometimes limited to once or twice a year. Check your sanction letter for the lock-in and the charge.

Usually yes if significant tenure remains. A 2% charge against a 13.5% rate pays for itself within a few months of saved interest — the calculator above shows the net position.

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