Income & loans
Loan Prepayment Calculator
Got a bonus or extra savings? See how much interest you save, and how much sooner you are debt-free, by prepaying your loan.
How this calculator works
The calculator reduces your outstanding balance by the one-time prepayment, then pays your normal EMI plus any extra amount each month until the loan is cleared. It compares total interest with your original schedule.
Things to keep in mind
- Prepayments in the first third of the loan save the most interest.
- Keep your emergency fund intact before prepaying.
- If your loan rate is low and you are in the old regime with home loan tax benefits, investing may beat prepaying. We can compare both for you.
FAQs
Should I reduce EMI or tenure?
Reducing tenure saves more interest. Reducing EMI eases monthly cash flow. This calculator shows the tenure option.
Are there prepayment charges?
For individuals on floating-rate home loans, banks generally do not charge prepayment penalties. Fixed-rate and business loans may have charges.
Get this plan reviewed by an expert
Share your numbers with us on WhatsApp or book a free call. We will turn them into a plan you can act on.