Prepayment Calculator
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Interest You'll Save
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Interest Without Prepayment
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Interest With Prepayment
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Time Saved
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Assumes the EMI stays the same and every extra payment reduces principal, with no prepayment penalty. Check your lender's terms.
A prepayment calculator shows the direct payoff of paying a little extra toward your loan principal every month — in rupees of interest saved, and in months or years shaved off your tenure.
Because interest is calculated on your outstanding balance, every extra rupee of principal paid early stops accruing interest for the rest of the loan — which is why even modest prepayments compound into meaningful savings over a long tenure.
How This Calculator Works
The calculator runs two full amortization schedules — one with your standard EMI only, and one adding your extra monthly prepayment to principal each month — then compares total interest paid and the resulting tenure in each scenario.
Frequently Asked Questions
Are there penalties for prepaying a loan in India?
For floating-rate home loans, RBI rules prohibit banks from charging prepayment penalties to individual borrowers. Fixed-rate loans and some other loan types may still carry a penalty — check your loan agreement.
Is it better to prepay or invest the extra amount instead?
It depends on your loan's interest rate versus your expected investment return. If your loan rate is higher than what you could reliably earn elsewhere after tax, prepaying is usually the safer, guaranteed win.
Does prepaying reduce my EMI or my tenure?
This calculator assumes your EMI stays fixed and your tenure shortens — the most common approach, and generally the one that saves the most total interest. Some lenders also offer the option to instead reduce your EMI while keeping tenure the same.