Loan Prepayment Calculator
See how much interest and time you save by making a one-time part-payment
Monthly EMI (unchanged)
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Total Interest: Before vs After Prepayment
Interest without prepayment₹0
Interest with prepayment₹0
Original tenure0
New tenure0
How Loan Prepayment Saves You Money
When you prepay a part of your loan, that amount goes straight toward reducing your principal. Since interest is charged on the outstanding principal, a lower principal means less interest for the rest of the loan. If you keep your EMI the same, your loan simply closes earlier — saving both interest and years.
Two Ways to Prepay
Reduce tenure (recommended): Keep the EMI the same and let the loan finish sooner. This maximises your interest savings — which is what this calculator shows.
Reduce EMI: Keep the tenure the same and lower your monthly payment. This eases monthly cash flow but saves less interest overall.
When Prepayment Makes the Most Sense
Prepay early in the loan. In the initial years, a large part of every EMI goes toward interest, so an early prepayment cuts the most interest. Prepaying in the last few years saves relatively little.
Frequently Asked Questions
Are there prepayment charges?
For floating-rate home loans to individuals, the RBI does not allow prepayment or foreclosure charges. Fixed-rate loans and some personal/car loans may levy a charge of 2–5%. Always check your loan agreement.
Should I prepay my loan or invest that money?
Compare your loan rate with your expected investment return. If your home loan is at 8.5% and you can earn 12% from equity over the long term, investing may build more wealth. But prepaying gives a guaranteed, risk-free "return" equal to your loan rate and reduces debt stress.
Does this calculator assume the prepayment is made now?
Yes. It assumes the one-time prepayment is applied to your current outstanding balance today, and that your EMI stays the same so the tenure shortens. Prepaying earlier saves more interest than prepaying later.
Can I prepay multiple times?
Yes. Many borrowers make small prepayments every year (for example, using their annual bonus). Each prepayment further reduces principal, interest and tenure. This calculator models a single lump-sum prepayment.