Loan Prepayment Calculator
See how much a lumpsum prepayment saves you.
Interest saved
₹7.17 L
Assumes your EMI stays the same and the tenure shortens — the option that saves the most interest. Floating-rate loans have no prepayment penalty for individuals.
Why prepaying early beats prepaying late
Interest accrues on the outstanding balance, so money paid in the early years — when the balance is highest — kills the most interest. The same ₹3 lakh prepaid in year 2 of a home loan can save several times more than in year 12.
Reduce EMI or reduce tenure?
When you prepay, lenders offer two choices: lower the EMI (more monthly breathing room) or keep the EMI and shorten the tenure (maximum interest saved). This calculator models the tenure-reduction option, which is mathematically superior if you can afford the current EMI.
Frequently asked questions
Are there charges for prepaying?
Floating-rate loans to individuals: no charges, by RBI rule. Fixed-rate loans and business borrowings can carry 2–5% foreclosure charges — check your sanction letter and net it against the savings shown here.
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