EMI Prepayment Calculator Including Balance Payment

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Prepayment and Balance Payment EMI Calculator


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Guide to use EMI Prepayment Calculator

  • Enter Loan Details: Start by selecting your currency and then enter the principal amount of your loan.
  • Set Interest Rate: Use the slider to choose your loan’s annual interest rate.
  • Specify Loan Tenure: Indicate the loan tenure in months or years, according to your loan agreement.
  • Enter Prepayment Amount: If you plan to make a prepayment, enter the amount. This is optional and helps you see how prepaying affects your loan.
  • Choose Adjustment Type: Decide whether you want the prepayment to reduce your monthly EMI or the overall loan tenure.
  • Calculate: Click ‘Calculate’ to see how prepayment affects your loan, including the new monthly EMI, the total interest payable, and the adjusted loan tenure.
  • Reset if Needed: If you want to adjust the inputs or start over, use the ‘Reset’ button.

Reducing EMI formula

emi prepayment calculator

Reducing tenure formula

emi prepayment calculator

About the Calculator and Its Usage

This intuitive EMI calculator is designed for anyone with a loan or mortgage seeking clarity on their repayment journey.

Whether you’re a homeowner paying off a mortgage, a student managing a loan, or an entrepreneur with business-related debt, this tool brings transparency to your financial planning.

What is a Prepayment and Balance Payment EMI Calculator?

It’s a financial tool designed to help loan borrowers understand how making prepayments can affect their monthly EMIs or loan tenure. It calculates the new monthly payment or the new loan term after making a lump sum payment towards the loan principal.

Who Can Benefit

  • Home Owners: Understand how additional payments can reduce the tenure of your mortgage or lower your monthly payments.
  • Students: Plan your education loan repayment effectively, seeing how prepayments during your study period can ease future financial burdens.
  • Entrepreneurs and Business Owners: Strategize your business loan repayments, choosing between reducing monthly outgoings or clearing debt faster.
  • Car Buyers: Manage auto loans more efficiently, deciding the best way to allocate additional funds for repayment.

Where It Is Useful

  • Budget Planning: Get a clearer picture of your financial future, ensuring you can plan your budget with an accurate understanding of your loan repayment schedule.
  • Debt Reduction Strategies: Explore different scenarios to find the most effective way to reduce debt, either by lowering monthly payments or shortening the loan term.
  • Financial Discussions: Armed with accurate figures, engage in more productive discussions with financial advisors, lenders, or family members about loan management.


How can prepaying a loan affect my EMI or loan tenure?

Prepaying your loan can either reduce your monthly EMI, making your monthly payments more manageable, or it can reduce the tenure of your loan, allowing you to pay off your loan faster.

Can I choose between reducing the EMI and reducing the loan tenure when I make a prepayment?

Yes, the calculator provides you with the option to choose how your prepayment will affect your loan. You can select either ‘Reduce Monthly EMI’ or ‘Reduce Total Tenure’ based on your financial strategy.

Is it beneficial to make a prepayment on my loan?

Making a prepayment can be beneficial as it can reduce the total interest you pay over the life of the loan. However, it’s essential to consider your cash flow and whether you might need the funds for other financial priorities.

Does the calculator take into account the type of interest (simple or compound) on the loan?

The calculator is designed based on the standard formula for EMI calculation, which is commonly used for loans with compound interest. It’s important to input the correct interest rate as per your loan agreement.

Are there any fees or penalties for making a prepayment?

This calculator does not account for any prepayment penalties or fees that your lender might charge. It’s advisable to check your loan agreement or consult with your lender to understand any charges associated with making a prepayment.

Can I use this calculator for any loan type?

Yes, this calculator is versatile and can be used for various types of loans, including home loans, personal loans, car loans, and education loans, provided the loan terms are consistent with the calculator’s settings.

How accurate is the Prepayment and Balance Payment EMI Calculator?

The calculator provides a close estimation based on the standard EMI calculation formula. However, for exact figures, especially if your loan has unique terms or conditions, it’s recommended to consult with your financial advisor or lender.


By providing a detailed breakdown of your loan repayment with and without prepayments, this calculator empowers you to make informed decisions, aligning your debt management with your financial goals.

Simple to use yet powerful in functionality, it’s a tool that turns the complex world of loan calculations into an easy-to-navigate financial journey.