Financial Tools
Loan Prepayment Calculator
Enter your outstanding loan balance, interest rate, and prepayment amount. See instantly how much interest you save and whether to reduce your EMI or close the loan sooner.
Loan Prepayment Calculator
See exactly how much interest and time you save by making a lump-sum prepayment.
Enter your current outstanding principal
Lump-sum amount you plan to prepay
Enter 0 to calculate for an immediate prepayment
Your Loan Today
Remaining Tenure
11 yrs 9 months
Total Interest Left
₹18,96,029
Option A — Reduce Tenure
RecommendedNew tenure
10 yrs 7 months
Months saved
14 months
Total interest
₹15,51,551
Interest saved
₹3,44,478
EMI remains
₹40,469 / month
Option B — Reduce EMI
New EMI
₹37,679 / month
EMI reduction
−₹2,790/mo
Total interest
₹17,52,675
Interest saved
₹1,43,354
Tenure stays
11 yrs 9 months
*Calculations assume a reducing balance method. Actual savings may vary based on lender policies and exact payment dates.
Why prepay?
Home loans are long-tenure products. A lump-sum prepayment made early in the loan can save several lakhs in interest — because the principal reduces faster and interest compounds on a smaller base.
Reduce tenure vs Reduce EMI
Reducing tenure almost always saves more interest — you close the loan sooner, so interest has less time to accumulate. Reducing EMI is better only if monthly cash flow is a priority.
When to prepay
Early in the loan tenure is the most impactful time — interest forms a large share of early EMIs. Prepaying in year 2–5 of a 20-year loan saves significantly more than prepaying in year 15.
Disclaimer: This calculator is for informational purposes only. Results are estimates based on a reducing balance method. Actual savings depend on your lender's prepayment policies, timing of payment processing, and applicable charges. Consult your bank before making prepayment decisions.