How to Use the Loan Payoff Calculator
Enter your original loan details (amount, rate, tenure). Then enter either an extra monthly payment or a one-time lump sum. Compare original vs accelerated payoff timeline.
Loan Payoff Calculator Formula
new_n = −log(1 − new_balance×r/new_emi) / log(1+r)Example Calculation
₹30 lakh loan at 9%, 20 years, paying ₹5,000 extra/month:
New EMI = original + 5000; recalculate n
Loan paid off ~5 years early; saves ≈ ₹8 lakh in interest
Frequently Asked Questions
Should I prepay loan or invest the extra amount?
Compare your loan interest rate with expected investment return. If loan rate > expected return (after tax), prepay. If investment return > loan rate (e.g., equity at 12% vs loan at 8.5%), consider investing instead.