Loan Prepayment Calculator
See how much interest and how many months you save by making a one-time prepayment on your loan.
Enter values to see the result.
About the Loan Prepayment Calculator
Making a one-time lump-sum payment toward your loan principal can save a surprising amount of interest and shorten your tenure. This calculator compares your loan with and without a prepayment, keeping the EMI the same, and shows exactly how much interest and how many months you save.
How to use it
- Enter your loan amount, interest rate and original tenure.
- Enter the one-time prepayment you plan to make.
- Set how many months into the loan you'll make that payment.
- See the interest saved, months saved and your new payoff date.
Borrowers who receive a bonus, maturity proceeds or windfall use this to decide whether to prepay their home or personal loan. Prepaying early in the loan saves the most because that's when interest is highest. Calculations run in your browser, keeping your loan details private.
Frequently asked questions
Is it better to prepay early or late in the loan?
Early. In the first years most of your EMI goes toward interest, so a prepayment then wipes out far more future interest than the same amount paid near the end.
Should prepayment reduce my EMI or my tenure?
Reducing the tenure (keeping the EMI the same) saves the most interest, which is what this calculator models. Reducing the EMI eases monthly cash flow but saves less overall.
Are there prepayment charges?
Floating-rate home loans to individuals usually have no prepayment penalty, but fixed-rate and some personal loans may. Check your loan agreement, as charges aren't included here.
Is my data saved?
No. The comparison is computed locally in your browser and nothing is uploaded.