Loan Prepayment Calculator User Guide

1. Introduction

The Loan Prepayment Calculator is a tool designed to help users:

1. Calculate monthly EMIs (Equated Monthly Installments).
2. Understand total interest payable and overall loan cost without prepayment.
3. Simulate savings achieved through prepayment strategies.
4. View a monthly repayment schedule with options to enter prepayment amounts for each month.

This tool makes loan planning and interest optimization quick and simple.

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2. Key Features

1. Monthly EMI Calculation: Calculates how much you need to pay each month based on loan amount, interest rate, and tenure.
2. Total Loan Costs: View the total interest payable and total amount to be repaid over the loan duration.
3. Prepayment Simulation: Enter prepayment amounts for specific months and instantly see the savings in interest.
4. Repayment Schedule: Detailed breakdown of monthly payments, showing principal, interest, remaining balance, and prepayment entries.

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3. How to Use the Calculator

Step 1: Input Loan Details

1. Loan Amount: Enter the total loan amount you’ve borrowed.
2. Interest Rate (%): Provide the annual interest rate of the loan.
3. Select Tenure Type: Choose whether your loan tenure is in years or months.
4. Loan Tenure: Input the loan repayment duration based on the tenure type you selected.
5. Loan Start Date: Select the date on which the loan repayment begins.

Step 2: Calculate EMI

1. Click the “Calculate” button.
2. The calculator will display:
3. Monthly EMI.
4. Total interest payable without prepayment.
5. Total loan amount payable without prepayment.

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Step 3: View and Edit Repayment Schedule

1. A table titled “Monthly Repayment Schedule” will appear.
2. Each row represents a month and includes:
3. Payment date.
4. Principal amount paid.
5. Interest amount paid.
6. EMI for the month.
7. Remaining loan balance.
8. Prepayment Input: A box where you can enter any additional prepayment amount for that month.

— Adding Prepayment

1. Enter a prepayment amount in the “Prepayment” column for any month.
2. The tool automatically recalculates the remaining balance, interest, and updates the interest savings.

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Step 4: View Savings

Once prepayment amounts are entered, the calculator will update the following results:

• Interest Saved from Prepayment: Displays the total interest you save by making prepayments.

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4. Results and Outputs

1. Monthly EMI: Your fixed monthly payment.
2. Total Interest Payable: Total interest without any prepayments.
3. Total Payable Amount: Total loan repayment cost (Principal + Interest) without prepayments.
4. Interest Saved: Displays the reduction in total interest due to prepayments.
5. Repayment Schedule: Provides a month-by-month breakdown of the loan.

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5. Tips for Using the Calculator

– If you’re planning multiple prepayments, enter them in the appropriate month fields to see accurate results.

-Compare interest savings with and without prepayments to strategize your repayments.        

Disclaimer:
The Loan Prepayment Calculator on MoneyInvest.in is provided for informational purposes only. Results are estimates and may not include factors like tax benefits. Actual savings may vary based on your loan terms and financial situation. Please consult your financial advisor or lender for personalized advice.