Loan Prepayment Calculator
Compare your loan with and without a lump sum or a higher EMI — see the interest saved and months cut.
Result
- Monthly EMI
- ₹26,991.78
- New monthly outgo
- ₹26,991.78
- Unchanged — EMI stays the same
- Total outflow after prepaying
- ₹50,65,883
- ₹64.78 L without prepaying
| Without prepaying | After prepaying | |
|---|---|---|
| Tenure | 20 years | 14 years 2 months |
| Monthly instalment | ₹26,991.78 | ₹26,991.78 |
| Total interest | ₹34,78,026 | ₹20,65,883 |
| Total outflow | ₹64,78,026 | ₹50,65,883 |
| Instalments paid | 240 | 170 |
Estimates only, on a fixed reducing-balance rate. Actual instalments vary with the lender’s rounding, processing fees, insurance and any rate reset — always check the sanction letter. The saving assumes the tenure shortens while the EMI stays the same. Some lenders instead reduce the EMI and keep the tenure, which saves less. Foreclosure or part-payment charges are not included — RBI bars them on floating-rate loans to individuals, but fixed-rate products may levy them, so check your agreement.
Estimated from the numbers you entered — not a projection of guaranteed returns.
About this calculator
Money paid over and above the EMI goes straight against the principal, so every rupee of it stops earning interest for the lender for the rest of the tenure. The earlier it lands, the more it saves. This compares the original schedule with one that takes a lump sum after a chosen month, a permanently higher EMI, or both.
Formula
- Base schedule: EMI = P × i × (1 + i)^n ÷ ((1 + i)^n − 1)
- Prepaid schedule: the same EMI, with the extra amount and the lump sum reducing the outstanding balance
- Interest saved = total interest on the base schedule − total interest on the prepaid schedule
- Tenure reduced = instalments in the base schedule − instalments in the prepaid schedule
Frequently asked questions
Does prepaying early really matter that much?
Yes, mechanically so. A rupee of principal repaid in year two avoids interest for every remaining year of the loan; the same rupee in the second-last year avoids barely any. Move the month field and watch the saving change.
Should I reduce the EMI or the tenure?
This calculator models a shorter tenure with the EMI unchanged, which saves the most interest. Reducing the EMI instead keeps the loan running for the original term and saves less. Lenders usually let you choose — ask which one they will apply.
Are prepayment charges included?
No. RBI does not permit foreclosure or prepayment penalties on floating-rate loans given to individual borrowers, but fixed-rate loans and some business loans can carry them. Check your sanction letter and subtract any charge from the saving shown here.
Is prepaying better than investing the money?
That depends on your loan rate, your tax position and what you would realistically earn elsewhere — and it is a personal decision, not one this tool takes a view on. What it can tell you is exactly how much interest the prepayment removes; compare that against the SIP and lumpsum calculators for the other side.