Loan Prepayment Calculator
See the interest and tenure you save by making a part-payment on your home loan.
Prepayment Frequency
Strategy
Interest saved
₹9.89 L
Tenure Saved: 4y 2m
Without Prepayment
₹23.18 L
Total interest over 15y 0m
With Prepayment
₹13.29 L
Total interest over 10y 10m
Current EMI
₹29.54 K
New EMI
₹29.54 K
Keeping your EMI the same and shortening tenure generally saves more interest than reducing EMI.
Loan Prepayment Calculator visual insights
Monthly EMI
₹21.70 K
Total Interest
₹27.07 L
How to Use This Calculator
Enter Amount
Set your loan amount or investment using the slider or input field.
Set Rate & Tenure
Adjust the interest rate and time period to match your scenario.
Get Results
See your EMI, total interest, and full payment breakdown instantly.
Share & Plan
Share the result link or download the amortization schedule as PDF.
About Loan Prepayment Calculator
Loan Prepayment Calculator helps you compare EMI, interest outgo, repayment amount, and loan affordability using India-focused assumptions and INR formatting. See the interest and tenure you save by making a part-payment on your home loan.
This tool is useful for borrowers in India planning home loans, personal loans, vehicle loans, education loans, and credit-card repayments. It is designed for quick planning before comparing bank offers, investment options, tax choices, or scheme rules with a qualified professional.
The calculations are tailored for users in India and use Indian number formatting, rupee values, and locally relevant finance terms wherever applicable.
Results are estimates for education and planning. Final decisions should use official documents, lender statements, scheme rules, tax notices, or advice from a qualified professional.
Frequently Asked Questions
Should I prepay my home loan?
Prepayment usually makes sense if your home-loan rate is higher than the after-tax return you can earn elsewhere. For floating-rate loans at 8.5%+, prepayment typically wins for most retail investors.
Is there a prepayment penalty on a part payment?
No. As per RBI guidelines, banks cannot charge a prepayment penalty on floating-rate home loans taken by individual borrowers — including partial part-payments. Fixed-rate loans may carry 2-3%.
Should I reduce EMI or tenure after prepayment?
Reducing tenure (keeping EMI same) saves more interest. Reducing EMI improves monthly cash flow. Pick based on whether your goal is total interest saved or monthly breathing room.
How much do I save by part-paying ₹5 lakh on a ₹30 lakh home loan?
On a ₹30 lakh loan at 8.5% for 20 years, a one-time part-payment of ₹5 lakh in year 1 (with tenure-reduction) saves roughly ₹10–11 lakh in interest and clips ~4 years off the tenure. Use the calculator to model your exact numbers.
Is it better to part-pay every year or once in a lump sum?
Yearly part-payments compound your saving — each ₹1 you prepay early stops earning interest sooner. A small recurring part-payment plus a year-end bonus typically beats waiting to accumulate one big prepayment.
Will my CIBIL score drop if I prepay?
No. Prepayment closes a portion of debt, which is neutral-to-positive for your credit score. Closing the loan entirely can briefly nudge your score down because you lose an active credit line, but it reverses within 1-2 cycles.
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Methodology & Formulas
All formulas used here comply with RBI guidelines and standard Indian financial conventions. Calculators are updated for FY 2026–27.
Last updated: April 2026