What is the Loan Prepayment Calculator?

The Loan Prepayment Calculator is a smart financial tool that helps you determine how much interest you can save by making early payments on your loan. Whether you plan to make monthly, quarterly, half-yearly, or yearly prepayments, this calculator provides insights into the impact of these payments on your total interest and loan tenure.

By using this tool, you can make informed decisions about reducing your debt faster and optimizing your financial strategy.

How the tool simplifies your work

Manually calculating the impact of prepayments on your loan can be complex and time-consuming. This tool simplifies the process by instantly computing:

• Your original total interest payable over the loan tenure.
• The new total interest after prepayments.
• The interest saved due to prepayment.
• The new loan tenure, showing how much time you save.
• A revised amortization schedule, reflecting the updated payment breakdown.

With just a few inputs, you can quickly assess how prepayments can help you become debt-free sooner.

What are the features and benefits?

The Loan Prepayment Calculator offers several features to help borrowers manage their loans more effectively:

✅ Easy-to-use Interface: Enter your loan details and prepayment amount in a simple format.
✅ Flexible Prepayment Options: Choose from monthly, quarterly, half-yearly, or yearly prepayment schedules.
✅ Instant Results: Get quick insights into interest savings and tenure reduction.
✅ Amortization Schedule Update: See how your loan repayment plan changes after prepayment.
✅ Helps in Financial Planning: Allows borrowers to strategize their prepayments and reduce debt burden efficiently.

Benefits of using the tool

Using the Loan Prepayment Calculator provides several advantages:

💰 Save Thousands on Interest – Making prepayments can significantly cut down your total interest cost.
⏳ Shorten Your Loan Tenure – Pay off your loan faster and become debt-free sooner.
📊 Better Financial Planning – Plan your prepayments strategically based on your financial goals.
🔢 Flexible Payment Schedules – Compare different prepayment frequencies to find the most beneficial option.
🚀 Instant Decision-Making – No need for complex manual calculations; get results in seconds.

How to use it

Using the Loan Prepayment Calculator is simple and straightforward:

1. Enter Loan Details – Input your loan amount, interest rate, and loan tenure.
2. Add Prepayment Amount – Specify how much extra you can pay.
3. Select Frequency – Choose whether you want to prepay monthly, quarterly, half-yearly, or yearly.
4. Click ‘Calculate Savings’ – The tool will instantly show your new interest payable, total interest saved, and reduced loan tenure.
5. View Amortization Schedule – Check how your repayment schedule changes after prepayment.