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Loan Prepayment Calculator

Interest and time saved by prepaying a loan.

₹30 Lakh
₹
%
years
₹2 Lakh
₹
₹
After prepaying, reduce
Interest saved
₹7,56,579
₹7.57 Lakh
Time saved
3 yr 0 mo
New tenure 17 yr 0 mo
Total interest now
₹24,91,748
was ₹32,48,327

How to use

  1. 1Enter your outstanding loan amount, interest rate and remaining tenure.
  2. 2Enter a one-time prepayment and/or an extra amount you'll pay every month.
  3. 3Choose whether to reduce the tenure or the EMI.
  4. 4See the interest you save and your new tenure or EMI.

Frequently asked questions

Should I reduce the tenure or the EMI?

Reducing the tenure saves much more interest. Reducing the EMI lowers your monthly burden instead. Compare both here.

Are there prepayment charges?

RBI rules don't allow prepayment penalties on floating-rate loans to individuals. Fixed-rate loans may have charges, so check with your bank.

When is the best time to prepay?

Early in the loan, when most of your EMI goes to interest. Even small prepayments in the first few years save a lot.

Should I prepay or invest?

If your loan rate is higher than the after-tax return you'd get from investing, prepaying usually wins. Keep an emergency fund first.

How is this calculated?

Month by month: interest is charged on the balance, your EMI and any extra payment reduce it, until the loan is paid off.

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