Loan Tenure Calculator
Loan Tenure Calculator
Find out how long your loan will take to pay off — and how much you save with prepayment.
View Amortization Schedule
| Month | Opening Balance | Principal | Interest | Closing Balance |
|---|
EMI needed to repay in a target tenure
Uses the loan amount and interest rate above. Enter how many years you want to take.
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. The EMI for a target tenure uses EMI = P·r·(1+r)n ÷ ((1+r)n − 1).
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 is the principal, r the monthly interest rate (annual rate ÷ 12) and n the number of months. The calculator also simulates the schedule month by month.
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r the monthly rate and n the number of months. For ₹10,00,000 at 9.25% over 5 years the EMI is about ₹20,880. Use the target tenure panel to get this for your own numbers.
Does prepayment reduce tenure or EMI?
Most lenders keep the EMI and shorten the tenure, and some let you lower the EMI instead. The calculator shows the shorter tenure and, under the result, the EMI you would pay if the tenure were kept. Confirm the option with your lender.
Is prepayment always beneficial?
Prepaying cuts the interest you pay, but compare it with other uses of the money and keep an emergency fund. Under the RBI’s Pre-payment Charges on Loans Directions, 2025, lenders cannot levy prepayment charges on floating-rate loans to individuals for non-business purposes sanctioned or renewed on or after 1 January 2026. Fixed-rate and older loans follow your agreement, so check it before paying early.
Why does my bank show a different tenure?
Banks may compound or charge interest on different dates, add processing fees or round the EMI differently. Treat this as a planning estimate. Your lender’s statement is the authoritative figure.
Why does the calculator say my EMI is too low?
If the EMI is not larger than one month’s interest (loan amount × monthly rate), the balance never falls. If the EMI only just covers the interest, the loan would run for more than 50 years, which the calculator also flags.
Does this work for home loans, car loans and personal loans?
Yes. They all use a reducing-balance EMI structure, so the same formula applies. Floating-rate loans change their rate over time, so rerun the calculator with the new rate.
Loan EMI and tenure formulas
For a reducing-balance loan with principal P, monthly rate r (annual rate ÷ 12) and n months, the EMI is P × r × (1 + r)n ÷ ((1 + r)n − 1). If you know the EMI instead, the number of months is n = ln(EMI ÷ (EMI − r × P)) ÷ ln(1 + r). The EMI must be larger than P × r, one month’s interest, or the balance never falls.
EMI on a ₹10,00,000 loan by rate and tenure
| Tenure | At 8.5% | At 9.25% | At 10% |
|---|---|---|---|
| 5 years | ₹20,517 | ₹20,880 | ₹21,247 |
| 10 years | ₹12,399 | ₹12,803 | ₹13,215 |
| 15 years | ₹9,847 | ₹10,292 | ₹10,746 |
| 20 years | ₹8,678 | ₹9,159 | ₹9,650 |
Multiply the figures by the loan amount ÷ ₹10,00,000 for a rough EMI on other amounts. A longer tenure lowers the EMI but raises the total interest.
What a prepayment saves: worked example
| Scenario | Tenure | Total interest | Interest saved | Time saved |
|---|---|---|---|---|
| No prepayment | 5y 4m | ₹2,67,957 | — | — |
| ₹1,00,000 at month 12 | 4y 9m | ₹2,23,092 | ₹44,864 | 7 months |
| ₹2,00,000 at month 12 | 4y 2m | ₹1,85,876 | ₹82,081 | 14 months |
| ₹5,00,000 at month 12 | 2y 7m | ₹1,12,894 | ₹1,55,062 | 33 months |
Loan of ₹10,00,000 at 9.25% with a fixed EMI of ₹20,000 and the lump sum applied after the 12th instalment. An earlier prepayment saves more, because interest is charged on a larger balance for longer.
Prepayment charges: what the RBI rules say
Under the RBI’s Pre-payment Charges on Loans Directions, 2025, lenders cannot levy prepayment charges on floating-rate loans to individuals for non-business purposes that are sanctioned or renewed on or after 1 January 2026. Fixed-rate loans, older loans and some business loans follow the terms in your sanction letter and agreement, and any charge must be disclosed upfront. Read your loan documents before you prepay.
More planning tools: the inflation impact calculator and the full tools list. This page is for education and is not financial advice.
See all our planning calculators on the planning tools page, including the inflation calculator for the future cost of a goal.
