Loan Tenure Calculator

Loan Tenure Calculator

Find out how long your loan will take to pay off — and how much you save with prepayment.

Outstanding principal balance
As stated in your loan agreement
Your fixed monthly repayment amount
One-time lump-sum payment towards principal
Month number when prepayment is made (e.g. 12 = end of year 1)

How This Calculator Works

Tenure is derived from the formula n = ln(EMI / (EMI − r·P)) / ln(1 + r), where P is principal, r is the monthly interest rate, and n is months. With a prepayment, the schedule is simulated month-by-month and the lump sum is applied to the outstanding balance in the selected month.

Disclaimer: Results are educational estimates only. Actual lender calculations may vary due to compounding cycle, processing fees, taxes, and prepayment terms.

Frequently Asked Questions

How is loan tenure calculated?

Tenure is derived from n = ln(EMI / (EMI − r·P)) / ln(1 + r) where P = principal, r = monthly rate, n = months.

Does prepayment reduce tenure or EMI?

Most lenders reduce tenure while keeping EMI unchanged. This calculator simulates tenure reduction. Confirm the policy with your lender.

Why does my bank show a different tenure?

Banks may compound daily, charge processing fees, or round EMIs differently. Use this as a planning estimate — your lender’s statement is the authoritative figure.

Is prepayment always beneficial?

Generally yes for high-interest loans. Always confirm whether your lender charges a prepayment penalty (common in fixed-rate products) before paying early.

Does this work for home loans, car loans, and personal loans?

Yes. All three use a reducing-balance EMI structure, so the formula applies equally.

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