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About this tool
See how extra loan payments reduce interest costs and shorten tenure. Compare one-time, monthly, quarterly, half-yearly, yearly, or custom prepayment plans.
Loan Prepayment Savings runs your loan twice — once on the plain EMI schedule and once with your prepayments added — and reports the difference in total interest, total payment and closure month. It computes the EMI from the standard amortisation formula P x r x (1+r)^n / ((1+r)^n - 1), then applies a prepayment on one of five schedules (one-time, monthly, quarterly, half-yearly or yearly), charting the two balance curves side by side and exporting the full month-by-month comparison as CSV. It suits anyone planning a bonus, a windfall or a recurring top-up against a home, car or personal loan.
Open Loan Prepayment Savings on AltFTool — it loads instantly in your browser.
Under Loan Details set Loan Amount, Interest Rate and Loan Term (Years), and pick a Currency of INR, USD, EUR or GBP.
Choose a Prepayment Frequency — One-Time, Monthly, Quarterly, Half-Yearly or Yearly — and enter the Prepayment Amount.
Read the Monthly EMI, Interest Saved and Time Saved cards and the Remaining Balance chart, then Copy Summary or Export CSV to get loan-prepayment-comparison.csv.
It builds the with-prepayment and without-prepayment schedules month by month and compares them directly, so the interest saved is a computed difference.
One-time, monthly, quarterly, half-yearly and yearly all use the same engine, making it easy to see which rhythm suits your cash flow.
Every month exports with balance, interest and prepayment amount for both scenarios, so you can audit the arithmetic in a spreadsheet.
On the default scenario — 50,00,000 at 8.5% over 20 years, EMI about 43,391 — a single 2,00,000 prepayment in the first month saves roughly 7,98,700 in interest and closes the loan about 23 months early. The earlier the prepayment lands, the larger both figures get.
For the same rupee amount per instalment, the more frequent the prepayment the more you save, because principal comes down sooner and less interest accrues. A monthly plan beats quarterly, which beats half-yearly and yearly. One-time is compared as a single payment in the first month.
This tool models tenure reduction: the EMI stays fixed at its original value and the loan simply closes earlier, which is the default treatment at most lenders. The result reports the new closure month and the months saved against the original tenure.
No. The comparison covers principal and interest only, so any foreclosure fee, part-payment charge or processing fee your lender levies has to be subtracted separately. Floating-rate home loans to individuals are often exempt from such charges, but check your own agreement and confirm the terms with your lender before prepaying.
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