Loan Part-Payment Calculator
A part-payment is a partial early repayment of principal. This calculator shows the new lower EMI (or the shorter tenure) you get, so you can decide which suits you.
Results
New EMI
₹23,249.82
- Interest saved
- ₹2,68,115
- New tenure
- 20 years
- Time saved
- 0 months
- Interest before prepayment
- ₹32,48,327
- Interest after prepayment
- ₹29,80,213
- Original EMI
- ₹26,034.70
Prepaying ₹3,00,000.00 after month 36 lowers the EMI from ₹26,034.70 to ₹23,249.82 and saves ₹2,68,114.77 in interest.
Total interest: before vs after
- Interest after prepayment₹29,80,213 (91.7%)
- Interest saved₹2,68,115 (8.3%)
Show the calculation steps
- Original EMI = ₹26,034.70 for 240 months; total interest ₹32,48,327.28.
- Balance after 36 payments = ₹28,04,580.25; after the prepayment of ₹3,00,000.00 it is ₹25,04,580.25.
- Keep the 204-month remaining tenure and recalculate the EMI on ₹25,04,580.25: ₹23,249.82.
- Interest saved = ₹32,48,327.28 − ₹29,80,212.51 = ₹2,68,114.77.
- Some lenders charge a prepayment or foreclosure fee (often waived on floating-rate loans for individuals). Fees are not included.
What is a part-payment?
A part-payment is any extra amount you pay towards your loan on top of your regular EMIs, without closing the loan. It is applied to the principal, so the balance and the interest charged on it fall.
Choosing between a lower EMI and a shorter loan
With a lower EMI the loan ends on the same date, and your monthly budget is eased. With a shorter tenure you keep paying the same EMI and clear the loan earlier. Switch the option above to compare the two outcomes.
Formula
Balance after k payments = P(1 + r)^k − EMI × ((1 + r)^k − 1) ÷ r
New balance = balance − prepayment
Reduce tenure: repay the new balance with the same EMI
Reduce EMI: EMI′ = new balance × r × (1 + r)^m ÷ ((1 + r)^m − 1), m = months left
Where:
- P
- = Original loan amount
- r
- = Monthly interest rate
- k
- = Number of EMIs paid before the prepayment
- m
- = Months remaining
Example calculation
₹30 lakh at 8.5% for 20 years, ₹3 lakh part-payment after 3 years (lower EMI)
Inputs
- Original Loan Amount
- ₹30,00,000
- Interest Rate
- 8.5 %
- Original Loan Tenure
- 20 years
- Part-Payment Amount
- ₹3,00,000
- Paid After
- 36 months
- After Paying, Reduce
- EMI (keep the same tenure)
Result
- Interest saved
- ₹2,68,115
- New EMI
- ₹23,249.82
- New tenure
- 20 years
- Time saved
- 0 months
- Interest before prepayment
- ₹32,48,327
- Interest after prepayment
- ₹29,80,213
- Original EMI
- ₹26,034.70
Step-by-step
- Original EMI = ₹26,034.70 for 240 months; total interest ₹32,48,327.28.
- Balance after 36 payments = ₹28,04,580.25; after the prepayment of ₹3,00,000.00 it is ₹25,04,580.25.
- Keep the 204-month remaining tenure and recalculate the EMI on ₹25,04,580.25: ₹23,249.82.
- Interest saved = ₹32,48,327.28 − ₹29,80,212.51 = ₹2,68,114.77.
Important notes
- The part-payment must be less than the balance at that point.
- Check your lender's minimum part-payment amount and any fee.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How does a part-payment reduce my EMI?
The lender recalculates the EMI on the smaller balance over the months that remain, using the same interest rate.
What is the difference between prepayment and part-payment?
A prepayment can be any early payment; a part-payment is a partial one that leaves the loan open. The calculation is the same.
Can I make more than one part-payment?
Yes. Run the calculator again using the new balance and the remaining tenure after each one.
Related calculators
- Loan Prepayment CalculatorSee how much interest and time a one-time prepayment saves on a loan, by shortening the tenure or lowering the EMI.
- EMI CalculatorCalculate the equated monthly instalment (EMI) on a home, car or personal loan, plus the total interest and a year-by-year repayment schedule.
- Home Loan EMI CalculatorCalculate your home loan EMI, total interest and repayment over 5 to 30 years, with a yearly principal and interest schedule.
- Personal Loan EMI CalculatorFind the monthly EMI and total interest on a personal loan for tenures from a few months to several years.
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