Financial Calculators
Loan Prepayment Calculator
A little extra every month does violent damage to a loan's interest. See exactly how much.
Interest saved
₹21,78,721
loan closes in 12 years 11 months instead of 20
- Regular EMI
- ₹43,391
- Months saved
- 85
Assumes a fixed extra amount paid every month toward principal. Floating-rate home loans typically allow prepayment without penalty; confirm your lender's terms. Compare the saving against what the same money could earn invested.
The most satisfying arithmetic in borrowing
Because early EMIs are mostly interest, money paid directly against principal in the early years removes the base on which decades of interest would have been charged. Even a modest fixed extra payment every month shortens the loan by years and saves lakhs.
This calculator simulates your loan month by month with the extra payment applied to principal, and reports the exact new payoff date and the interest saved, so the prepay-versus-invest decision can be made with real numbers.
How the calculation works
Each month: interest accrues on the balance, the EMI is paid,\nand the extra amount reduces principal directly.\nSimulated to the exact payoff month.Worked example: on a Rs 50,00,000 loan at 8.5% with 20 years remaining, an extra Rs 10,000 every month closes the loan in about 12 years 11 months instead of 20, saving about Rs 21,78,721 of interest.
Frequently asked questions
Prepay or invest the extra money?
Compare the loan rate against your realistic post-tax investment return, then weigh peace of mind, tax deductions on the loan, and liquidity. There is a genuine case both ways; we run it with your numbers.
Are there prepayment penalties?
Floating-rate home loans to individuals are typically free of prepayment charges; fixed-rate and other loan types may differ. Confirm with your lender.
Lower the EMI or shorten the tenure when prepaying?
Shortening the tenure saves far more interest; lowering the EMI eases monthly cash flow. Savers usually choose tenure.
Do occasional lump-sum prepayments work too?
Excellently, and earlier is better. This calculator models a steady monthly extra; lump sums compound the effect further.
Attack the principal, keep the SIPs.
We help you split surplus between prepayment and investing so both goals advance.