Loans & Debt · Reduce Your Loan
Prepayment Optimizer
Compare two strategies for a lump-sum prepayment: reducing your EMI while keeping roughly the same tenure, versus keeping your EMI the same and finishing the loan sooner.
Your inputs
Your result Live
Recommended: Reduce Tenure
₹8,44,386
Estimated interest saved with the better option
- Option A — New EMI
- ₹14,771
- Option A — Interest Saved
- ₹3,32,521
- Option B — Months Saved
- 67 (5y 7m)
- Option B — Interest Saved
- ₹8,44,386
No Prepayment vs. Reduce EMI vs. Reduce Tenure
3 rowsReducing tenure while keeping your EMI the same usually saves more total interest than reducing EMI, provided you can comfortably continue paying the existing EMI amount. This is not universal — the numbers above reflect your specific loan.
This calculator provides an estimate. Whether your lender actually offers a choice between reducing EMI or tenure after a prepayment depends on their policies — confirm with your bank.
An estimate from the assumptions you entered, not a guaranteed outcome.
How this is calculated
A lump-sum prepayment reduces your outstanding principal immediately. From there, you can either keep paying roughly the same EMI (which pays off the now-smaller loan faster — 'reduce tenure'), or recalculate a smaller EMI over your original remaining tenure ('reduce EMI'). Because interest is charged on the outstanding balance, paying it down faster generally saves more interest — but reducing EMI frees up monthly cash flow, which has its own value.