Loan Prepayment
Free · Live calculation · Your data stays in your browser
Loan Details
See how much prepayment saves
One-time lump sum prepayment
Earlier prepayment = more savings
Interest You'll Save
₹14,57,301
Plus close your loan 3.8 years early
Time Saved
45 mo
Original Interest
₹54,13,879
New Interest
₹39,56,578
Before vs After Prepayment
Without Prepayment
₹54,13,879
Total interest in 20y
With Prepayment
₹39,56,578
Closes in 16.3y
Insight
A one-time ₹5,00,000 prepayment saves you ₹14,57,301 in interest and closes your loan 3.8 years early. That's a 291% return on your prepayment!
Pro Tip
- •Prepay early - prepayment in initial years saves more interest.
- •Most banks have no prepayment penalty on floating rate home loans.
- •Use bonuses, tax refunds, and surplus income to prepay.
- •Even small partial prepayments make a huge difference over time.
What is Loan Prepayment?
Loan prepayment is paying off part or all of your loan before the scheduled tenure. Prepaying saves you significant interest, especially if done in the early years when EMIs are mostly interest. Most home loans (floating rate) have no prepayment penalty in India, making prepayment a smart way to become debt-free faster and save lakhs.
How to Use
- 1Enter your current loan details (amount, rate, tenure)
- 2Enter the prepayment amount you can afford
- 3Set when you'll prepay (after which month)
- 4See interest saved and time saved
Formula
After prepayment, recalculate remaining tenure with new balance.
Interest Saved = Original Total Interest − New Total InterestFrequently Asked Questions
Compare the loan rate with potential investment returns. Home loan at 8.5% vs equity returns at 12% - investing wins long-term. But prepayment is guaranteed savings while investments are risky. A 70-30 split (mostly invest, some prepay) often works best.