Loan Payoff Calculator
See how much an extra monthly payment saves in interest and time.
Your loan
Interest saved
—
Add an extra monthly payment to see the effect.
- Current EMI
- —
- Time saved
- —
- New payoff
- —
Side by side
| Without extra | With extra | Difference |
|---|
Paying extra early saves far more than paying extra late — interest is charged on the balance that is still outstanding, so every rupee knocked off now stops accruing for the whole remaining term.
What paying extra actually does
Every rupee you pay above your EMI goes straight against the principal. Because interest is charged on the outstanding balance, that rupee stops accruing interest for the entire remaining term — which is why a modest extra payment can cut years off a long loan.
Why this is simulated, not a formula
The tidy EMI formula assumes a fixed term. The moment you pay extra, the term is no longer the
n in that formula, and every later month's interest depends on the balance your earlier
extra payments left behind. This calculator therefore runs the loan month by month, twice — once at
your normal EMI and once with the extra — and compares the totals.
Edge cases handled
- The final month is a part payment. Collecting a full EMI when less is owed would overstate the total, so the last payment is capped at the balance plus that month's interest.
- Payments that never clear the loan. If the payment does not cover the monthly interest, the balance never falls. Rather than reporting a 100-year term as if it were an answer, the calculator says so plainly.
Before you commit
Check whether your lender charges a prepayment or foreclosure penalty — on floating-rate home loans to individuals these are generally not permitted in India, but they are common on fixed-rate and personal loans. Also confirm that extra payments reduce your term rather than your EMI; some lenders default to the latter, which saves far less.