Loan Prepayment Calculator - See How Much You Save
Calculate how much interest you save by making loan prepayments. See the impact of lump sum payments on your loan tenure and total cost.
Calculate Loan Prepayment
Original loan amount
Annual interest rate
Original loan tenure
Lump sum prepayment amount
When you'll make the prepayment
Interest Saved
₹17,70,380
Monthly EMI
₹26,035
Original Total Interest
₹32,48,400
New Tenure (Months)
172
How to Use This Loan Prepayment Calculator
Using our Loan Prepayment Calculator is simple and takes just a few seconds. Enter your values using the sliders or input fields above, and the results will update instantly — no need to click a calculate button.
All calculations are performed in your browser using standard financial formulas. Your data is never stored or transmitted to any server, ensuring complete privacy.
The results shown are estimates based on the inputs you provide. For precise figures, consult with your bank or financial advisor. Use this tool for quick comparisons, planning, and understanding how different variables affect your financial outcomes.
Formula & Explanation
Interest Saved = Original Total Interest - New Total Interest after PrepaymentWhen you make a prepayment, the outstanding principal reduces immediately. With the same EMI, more of each payment goes toward principal, reducing tenure significantly. The earlier you prepay, the more interest you save due to the reducing balance method.
Calculation Examples
Home Loan Prepayment
₹30L loan at 8.5%, prepay ₹5L after 2 years
Interest Saved: ₹8.2 Lakh | Tenure reduced by 38 months
Benefits
- See exact interest savings
- Compare prepayment timing
- Plan surplus fund usage
- Understand tenure reduction
- Make informed financial decisions
Use Cases
- Home loan prepayment planning
- Bonus/increment utilization
- Inheritance/windfall planning
- Loan closure planning
- EMI vs investment decision
About Loan Prepayment Calculator
Our Loan Prepayment Calculator shows you exactly how much interest you can save by making a one-time prepayment on your home loan, car loan, or personal loan. See how prepayment reduces your tenure while keeping EMI the same, and make informed decisions about using surplus funds.
Frequently Asked Questions
Reducing tenure saves more interest in the long run. If you keep the same EMI after prepayment, your loan closes faster and you save maximum interest. Reducing EMI gives immediate cash flow relief but saves less overall.
For floating rate home loans, RBI has mandated zero prepayment penalty. For fixed-rate loans and personal loans, banks may charge 2-5% of the prepaid amount. Always check your loan agreement before prepaying.
The earlier you prepay, the more you save. In the first few years of a loan, most of your EMI goes toward interest. A prepayment in year 2-3 saves significantly more than the same amount prepaid in year 15.
If your loan interest rate is higher than your expected investment returns (post-tax), prepay the loan. For example, if home loan is at 8.5% and FD gives 7% (5% post-tax), prepaying is better. But if you can earn 12%+ in equity over long term, investing may be better.