Prepayments reduce principal on the exact date. Interest in that EMI cycle splits around the prepayment date using actual days.
Each prepayment has its own action (Reduce EMI or Reduce Tenure) processed independently.
Multiple prepayments are sorted chronologically and processed in order.
Prepayments
Step-Up Configuration
% Step-Up Only
Fixed Additional
Combination
%
₹
%
₹
Prepayments (optional)
Frequently Asked Questions
How is the EMI calculated?
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The calculator uses the loan amount, annual interest rate and repayment tenure to estimate the EMI using the reducing-balance method.
What is pre-EMI interest?
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It is the interest accrued between the loan disbursement date and the first EMI date. This calculator adds it to the outstanding principal before calculating the EMI.
How does a prepayment affect my loan?
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A prepayment reduces the outstanding principal. You can use it either to lower your future EMI or shorten the loan tenure.
What is a step-up EMI?
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A step-up EMI increases your repayment periodically by a percentage, fixed monthly amount or both. This can help repay the loan sooner and reduce total interest.
Why might the result differ from my lender's schedule?
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Lenders may use different rounding rules, day-count methods, fees and prepayment policies. The calculator's results are estimates and should be confirmed with your lender.
Can I add multiple prepayments?
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Yes. You can enter multiple prepayments with different dates, amounts and actions. They are processed chronologically.
What is the difference between "Reduce EMI" and "Reduce Tenure"?
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"Reduce EMI" recalculates a lower EMI over the remaining repayment period. "Reduce Tenure" retains the current EMI and uses the lower principal balance to repay the loan sooner.
Does the loan tenure begin from the disbursement date?
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Yes. The calculator treats the entered tenure as beginning from the disbursement date. Calendar months between disbursement and the first EMI are deducted when determining the number of regular EMIs.
Why does the first EMI date affect my EMI?
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A longer gap between disbursement and the first EMI creates more pre-EMI interest. Since that interest is capitalised, it can increase the adjusted principal and consequently the EMI.