Loan Prepayment Calculator — Interest Saved & SIP Projection
See exactly how much interest a lump-sum prepayment saves — and what investing the freed-up EMI as a SIP could grow to.
Loan details
Outstanding: ₹47,92,181
What do you want to enter?
The lump sum you plan to pay now.
Result
Save 3 yr 9 mo off your loan
Prepayment
₹5,00,000
New tenure
14 yr 3 mo
was 18 yr left
Time saved
3 yr 9 mo
Original EMI
₹43,391
Interest without prepay
₹54,13,879
Interest with prepay
₹39,61,277
💰 Interest saved
₹14,52,602
📈 Invest the savings as a SIP
Your loan ends 3 yr 9 mo early. Invest that EMI into a SIP for those freed months:
Auto-filled
Auto: 3 yr 9 mo
SIP Maturity Value
₹24,75,278
Total SIP invested
₹19,52,595
Gains from SIP
₹5,22,683
Combined benefit of prepaying
₹19,75,285
Interest saved (₹14,52,602) + SIP gains (₹5,22,683)
Concept
When you prepay a loan, the money goes directly to reducing the outstanding principal. Because all future interest is calculated on this smaller base, the savings compound — a prepayment early in the loan saves far more than the same amount made later, when most of the interest has already been paid.
You have two ways to use the saving: reduce the tenure (loan ends sooner, same EMI) or reduce the EMI (same timeline, lower monthly burden). Reducing tenure almost always saves more total interest and is usually the better financial move.
The SIP projection below reveals the second-order benefit: once the loan ends early, redirect the EMI into a mutual fund SIP and let compounding work in your favour instead of the bank's.
Formula
Variables
P₹- Original loan principal.
R- Monthly interest rate = Annual rate ÷ 12 ÷ 100.
k- Number of EMIs already paid before prepayment.
B₹- Outstanding balance after k payments.
n*- Target remaining months after tenure reduction.
M₹- Monthly SIP investment (freed EMI or monthly saving).
i- Monthly SIP return = Annual SIP rate ÷ 12 ÷ 100.