A Step-by-Step Guide to Saving Money with the Loan Simulator
Our Loan Simulator is your most powerful tool for financial planning. This guide will show you exactly how to use it to see potential savings and pay off your loan faster.
Step 1: Calculate Your Baseline Loan
Before you can simulate, you need a starting point. Go to the main calculator and enter your current loan details:
- Loan Amount: The original principal of your loan.
- Annual Rate: The yearly interest rate.
- Tenure: The total number of months for the loan.
- Start Date: When your first EMI was or will be paid.
Click "Calculate EMI". This will generate your original amortization schedule and show you the total interest you would pay without any changes.
Step 2: Start the Simulation
Once your initial loan is calculated, a card will appear prompting you to start a simulation. Click the **"Simulate Loan Scenarios"** button. This will open up the simulation form, your command center for financial strategy.
Step 3: Add Your First Scenario (A Real-World Example)
Let's imagine you have a **₹50,00,000** home loan for **20 years (240 months)** starting in January 2024. Three years into the loan, you receive a **₹2,00,000** bonus and want to use it as a part payment.
A. Add a Part Payment Scenario
Click the **"Make Part Payment"** button. This adds a new scenario block to the form.
B. Set the Date
Your loan started in Jan 2024. Three years later is Jan 2027. In the "Date to apply change after" fields, select **January** and **2027**.
C. Enter the Amount
In the "Part Payment (INR)" field, enter **200000**.
Step 4: Run the Simulation and Analyze the Results
With your scenario configured, click the **"Simulate Cumulative Impact"** button at the bottom. The results will appear instantly.
Example Result
You'll see a results card showing:
- Interest Saved: A significant amount, likely several lakhs!
- Payments Saved: Your loan tenure will be reduced, perhaps by 20-30 months.
- New Tenure: The new, shorter loan duration.
Below the summary, you'll see charts and tables comparing your original loan path to the new, simulated one. You can visually see the balance drop off faster.
Step 5: Experiment Further!
The power of the simulator is its flexibility. Don't stop at one scenario.
- What if you also got a better interest rate two years later? Add a "Change Rate" scenario.
- What if you could afford to increase your EMI by ₹5,000 every month starting next year? Add an "Adjust EMI" scenario.
The simulator calculates the **cumulative impact**, meaning each new scenario builds on the last. This allows you to model a complete, multi-year financial strategy and see the final outcome.
Ready to Build Your Own Strategy?
Now that you know how it works, go to the calculator and start experimenting. See how small changes can lead to big savings.
Go to the Loan Calculator & Simulator