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Loan Prepayment Calculator

See how much interest and time a one-time lump-sum prepayment saves you, assuming your EMI stays the same and the loan tenure shortens.

Interest Saved
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Original total interest₹0
New total interest₹0
Tenure reduced by0 months
Assumes your EMI amount stays unchanged after prepayment (so the loan closes sooner) — most Indian lenders default to this unless you ask them to reduce the EMI instead. Check for any prepayment charges with your lender (floating-rate home loans to individuals are RBI-mandated to have zero foreclosure/prepayment charges).

How Loan Prepayment Savings Are Calculated

When you make a lump-sum prepayment, your outstanding principal drops immediately. If your EMI stays the same, the loan simply finishes sooner — you skip the final months of a loan where you'd otherwise still be paying meaningful interest, which is why prepayment saves more than it might first appear.

The earlier in the loan tenure you prepay, the more interest you save, because early EMIs are interest-heavy. A prepayment in year 1 typically saves noticeably more than the same amount prepaid in year 10.

Frequently Asked Questions

Is it better to reduce my EMI or reduce my tenure after prepaying?

Reducing the tenure (keeping EMI the same) saves more total interest than reducing the EMI, since you close out the interest-heavy final stretch of payments sooner.

Are there charges for prepaying a home loan?

For floating-rate home loans to individuals, RBI rules require zero foreclosure or prepayment charges. Fixed-rate loans and other loan types (personal, car) may still carry a prepayment penalty — check your agreement.

Is it always better to prepay than invest the money?

Not necessarily — it depends on your loan's interest rate versus what you could realistically earn investing that money. Use the Prepay vs Invest calculator to compare the two directly.