Loan Prepayment Calculator
Model a lump‑sum prepayment on your loan and see the interest saved — with tenure cut or EMI reduction.
How to Use Loan Prepayment Calculator
- Enter your outstanding loan details. Type the remaining principal, annual interest rate and the years left on your loan.
- Input the prepayment amount. This is the lump sum you plan to pay towards the principal. It should be less than the outstanding balance.
- Choose the prepayment mode. Decide whether you want to keep the EMI the same and shorten the tenure, or keep the tenure and reduce the monthly EMI.
- Click Calculate. The tool shows your current EMI, the new EMI or tenure after prepayment, and the total interest saved compared to continuing without prepayment.
Benefits of Loan Prepayment Calculator
- Compares the two most common prepayment strategies side‑by‑side — reducing tenure saves significantly more interest, while reducing EMI improves monthly cash flow.
- Uses the exact reducing‑balance amortisation method, not a flat‑rate approximation, so the savings figure is accurate.
- Works for any loan type (home, car, personal) as long as you know the outstanding principal, rate and remaining tenure.
- Instant and private — your loan data never leaves your browser.
Frequently Asked Questions
Which is better: reducing tenure or reducing EMI?
Reducing tenure saves far more total interest because the loan ends sooner. Reducing EMI frees up cash monthly but saves less overall. Choose based on whether your priority is long‑term savings or short‑term cash flow.
Is there a prepayment penalty on floating‑rate home loans in India?
No. For individual borrowers with floating‑rate loans, RBI has prohibited prepayment penalties. Fixed‑rate loans may attract a small charge; check your loan agreement.
Should I prepay my loan or invest the surplus?
If your loan interest rate is higher than the post‑tax return on safe investments, prepaying is mathematically better. For home loans at 8‑9%, prepayment often beats FD returns after tax.
Is Loan Prepayment Calculator free and private?
Yes — it is 100% free, needs no sign‑up, and everything runs in your browser; your data never leaves your device.
Disclaimer: Prepayment penalties may apply on fixed‑rate loans. Verify with your lender.