Loan Prepayment Calculator

Calculate how much you can save by making prepayments on your loan

Loan Details

Loan Amount (₹)

Interest Rate (% per annum)

Loan Tenure (Years)

Prepayment Details

Prepayment Amount (₹)

Prepayment Frequency

Start Prepayment from Month

Total Savings

₹0

Interest Saved:₹0

Tenure Reduced:0.0 years

New Loan Period:0.0 years

Without vs With Prepayment

WITHOUT PREPAYMENT

20 yrs

Loan Tenure

WITH PREPAYMENT

0.0 yrs

Loan Tenure

Monthly EMI₹0

Total Interest (Regular)

₹0

Total Interest (Prepaid)

₹0

Total Payment (Regular)

₹0

Total Payment (Prepaid)

₹0

Key Metrics

Loan Amount₹25,00,000

Interest Rate8.5% p.a.

Prepayment Schedule₹1,00,000 every year

Savings Percentage0.0%

Savings Breakdown

Interest Savings₹0

Interest (Regular)

Interest (Prepaid)

Payment Schedule Preview

Showing first 5 years and then yearly breakdown with prepayments

Month	EMI	Principal	Interest	Prepayment	Balance
1	₹21,696	₹3,987	₹17,708	-	₹24,96,013
2	₹21,696	₹4,015	₹17,680	-	₹24,91,997
3	₹21,696	₹4,044	₹17,652	-	₹24,87,953
4	₹21,696	₹4,073	₹17,623	-	₹24,83,881
5	₹21,696	₹4,101	₹17,594	-	₹24,79,779
6	₹21,696	₹4,130	₹17,565	-	₹24,75,649
7	₹21,696	₹4,160	₹17,536	-	₹24,71,489
8	₹21,696	₹4,189	₹17,506	-	₹24,67,300
9	₹21,696	₹4,219	₹17,477	-	₹24,63,081
10	₹21,696	₹4,249	₹17,447	-	₹24,58,832
11	₹21,696	₹4,279	₹17,417	-	₹24,54,553
12	₹21,696	₹4,309	₹17,386	₹1,00,000	₹23,50,244
13	₹21,696	₹5,048	₹16,648	-	₹23,45,196
14	₹21,696	₹5,084	₹16,612	-	₹23,40,112
15	₹21,696	₹5,120	₹16,576	-	₹23,34,993
16	₹21,696	₹5,156	₹16,540	-	₹23,29,837
17	₹21,696	₹5,193	₹16,503	-	₹23,24,644
18	₹21,696	₹5,229	₹16,466	-	₹23,19,415
19	₹21,696	₹5,266	₹16,429	-	₹23,14,148
20	₹21,696	₹5,304	₹16,392	-	₹23,08,845
21	₹21,696	₹5,341	₹16,354	-	₹23,03,503
22	₹21,696	₹5,379	₹16,316	-	₹22,98,124
23	₹21,696	₹5,417	₹16,278	-	₹22,92,707
24	₹21,696	₹5,456	₹16,240	₹1,00,000	₹21,87,251
25	₹21,696	₹6,203	₹15,493	-	₹21,81,049
26	₹21,696	₹6,246	₹15,449	-	₹21,74,802
27	₹21,696	₹6,291	₹15,405	-	₹21,68,512
28	₹21,696	₹6,335	₹15,360	-	₹21,62,176
29	₹21,696	₹6,380	₹15,315	-	₹21,55,796
30	₹21,696	₹6,425	₹15,270	-	₹21,49,371
31	₹21,696	₹6,471	₹15,225	-	₹21,42,900
32	₹21,696	₹6,517	₹15,179	-	₹21,36,383
33	₹21,696	₹6,563	₹15,133	-	₹21,29,820
34	₹21,696	₹6,609	₹15,086	-	₹21,23,211
35	₹21,696	₹6,656	₹15,039	-	₹21,16,555
36	₹21,696	₹6,703	₹14,992	₹1,00,000	₹20,09,852
37	₹21,696	₹7,459	₹14,236	-	₹20,02,393
38	₹21,696	₹7,512	₹14,184	-	₹19,94,881
39	₹21,696	₹7,565	₹14,130	-	₹19,87,315
40	₹21,696	₹7,619	₹14,077	-	₹19,79,697
41	₹21,696	₹7,673	₹14,023	-	₹19,72,024
42	₹21,696	₹7,727	₹13,969	-	₹19,64,297
43	₹21,696	₹7,782	₹13,914	-	₹19,56,515
44	₹21,696	₹7,837	₹13,859	-	₹19,48,678
45	₹21,696	₹7,892	₹13,803	-	₹19,40,786
46	₹21,696	₹7,948	₹13,747	-	₹19,32,837
47	₹21,696	₹8,005	₹13,691	-	₹19,24,833
48	₹21,696	₹8,061	₹13,634	₹1,00,000	₹18,16,771
49	₹21,696	₹8,827	₹12,869	-	₹18,07,944
50	₹21,696	₹8,889	₹12,806	-	₹17,99,055
51	₹21,696	₹8,952	₹12,743	-	₹17,90,103
52	₹21,696	₹9,016	₹12,680	-	₹17,81,087
53	₹21,696	₹9,080	₹12,616	-	₹17,72,008
54	₹21,696	₹9,144	₹12,552	-	₹17,62,864
55	₹21,696	₹9,209	₹12,487	-	₹17,53,655
56	₹21,696	₹9,274	₹12,422	-	₹17,44,381
57	₹21,696	₹9,340	₹12,356	-	₹17,35,042
58	₹21,696	₹9,406	₹12,290	-	₹17,25,636
59	₹21,696	₹9,472	₹12,223	-	₹17,16,164
60	₹21,696	₹9,539	₹12,156	₹1,00,000	₹16,06,624
72	₹21,696	₹11,148	₹10,547	₹1,00,000	₹13,77,902
84	₹21,696	₹12,899	₹8,797	₹1,00,000	₹11,28,963
96	₹21,696	₹14,805	₹6,891	₹1,00,000	₹8,58,020
108	₹21,696	₹16,879	₹4,817	₹1,00,000	₹5,63,129
120	₹21,696	₹19,136	₹2,559	₹1,00,000	₹2,42,171
132	₹21,696	₹14,437	₹102	-	₹0

About Loan Prepayment

What is Loan Prepayment?

Loan prepayment means paying off a part or the entire loan amount before the scheduled tenure ends. This reduces your outstanding principal, which in turn reduces the interest you pay over the remaining loan period. Most banks allow prepayment for home loans, though some may charge a prepayment penalty.

Benefits of Loan Prepayment

Significant reduction in total interest payable
Reduced loan tenure - become debt-free faster
Improved credit score as you pay off debt
Mental peace and financial freedom
Better cash flow in future as EMI burden reduces earlier
Save money that can be invested elsewhere

Types of Prepayment Options

Part-Prepayment: Pay a portion of the loan principal in addition to regular EMI

Full Prepayment: Clear the entire outstanding loan amount at once

Reduce EMI: Keep tenure same but reduce monthly EMI after prepayment

Reduce Tenure: Keep EMI same but close loan earlier (recommended)

When to Prepay Your Loan?

Early in the tenure: Maximum interest savings in initial years
After receiving bonus/windfall: Use unexpected income wisely
When interest rates are high: More impactful savings
Before investing in other assets: Guaranteed returns equal to loan interest rate
When you have surplus cash: Better than keeping idle in savings account

Important Considerations

Check for prepayment charges: Some banks charge 2-3% penalty on prepayment
Maintain emergency fund: Don't exhaust all savings for prepayment
Tax benefits: Consider loss of tax deduction on interest under 80C and 24(b)
Alternative investments: If you can earn more than loan interest rate, invest instead
Loan tenure: Prepayment is most beneficial in first half of loan tenure
Document properly: Keep prepayment receipts and updated loan statements

Prepayment Strategy Tips

💡 Yearly Prepayment: Make annual prepayments from bonus or increment

💡 Increase with Income: Gradually increase prepayment amount each year

💡 Choose Tenure Reduction: Always opt to reduce tenure rather than EMI

💡 Start Early: Even small prepayments in initial years make big difference

Example Scenario

Loan: ₹25 lakhs at 8.5% for 20 years

• Monthly EMI: ₹21,927

• Total Interest (Regular): ₹27.63 lakhs

With ₹1 lakh yearly prepayment from year 1:

• Total Interest Paid: ₹17.83 lakhs

• Interest Saved: ₹9.80 lakhs

• Tenure Reduced: 20 years → 13.2 years (6.8 years saved!)

💰 Pro Tips for Maximum Savings

• Prepay in the first 5 years for maximum impact
• Use bonuses and increments strategically for prepayment
• Choose tenure reduction over EMI reduction
• Compare prepayment savings with investment returns before deciding
• Consider loan refinancing if better rates are available
• Always maintain 6-12 months emergency fund before prepaying

← Back to Calculators

Loan Prepayment Calculator

Calculate how much you can save by making prepayments on your loan

Loan Details

Loan Amount (₹)

Interest Rate (% per annum)

Loan Tenure (Years)

Prepayment Details

Prepayment Amount (₹)

Prepayment Frequency

Start Prepayment from Month

Total Savings

₹0

Interest Saved:₹0

Tenure Reduced:0.0 years

New Loan Period:0.0 years

Without vs With Prepayment

WITHOUT PREPAYMENT

20 yrs

Loan Tenure

WITH PREPAYMENT

0.0 yrs

Loan Tenure

Monthly EMI₹0

Total Interest (Regular)

₹0

Total Interest (Prepaid)

₹0

Total Payment (Regular)

₹0

Total Payment (Prepaid)

₹0

Key Metrics

Loan Amount₹25,00,000

Interest Rate8.5% p.a.

Prepayment Schedule₹1,00,000 every year

Savings Percentage0.0%

Savings Breakdown

Interest Savings₹0

Interest (Regular)

Interest (Prepaid)

Payment Schedule Preview

Showing first 5 years and then yearly breakdown with prepayments

Month	EMI	Principal	Interest	Prepayment	Balance
1	₹21,696	₹3,987	₹17,708	-	₹24,96,013
2	₹21,696	₹4,015	₹17,680	-	₹24,91,997
3	₹21,696	₹4,044	₹17,652	-	₹24,87,953
4	₹21,696	₹4,073	₹17,623	-	₹24,83,881
5	₹21,696	₹4,101	₹17,594	-	₹24,79,779
6	₹21,696	₹4,130	₹17,565	-	₹24,75,649
7	₹21,696	₹4,160	₹17,536	-	₹24,71,489
8	₹21,696	₹4,189	₹17,506	-	₹24,67,300
9	₹21,696	₹4,219	₹17,477	-	₹24,63,081
10	₹21,696	₹4,249	₹17,447	-	₹24,58,832
11	₹21,696	₹4,279	₹17,417	-	₹24,54,553
12	₹21,696	₹4,309	₹17,386	₹1,00,000	₹23,50,244
13	₹21,696	₹5,048	₹16,648	-	₹23,45,196
14	₹21,696	₹5,084	₹16,612	-	₹23,40,112
15	₹21,696	₹5,120	₹16,576	-	₹23,34,993
16	₹21,696	₹5,156	₹16,540	-	₹23,29,837
17	₹21,696	₹5,193	₹16,503	-	₹23,24,644
18	₹21,696	₹5,229	₹16,466	-	₹23,19,415
19	₹21,696	₹5,266	₹16,429	-	₹23,14,148
20	₹21,696	₹5,304	₹16,392	-	₹23,08,845
21	₹21,696	₹5,341	₹16,354	-	₹23,03,503
22	₹21,696	₹5,379	₹16,316	-	₹22,98,124
23	₹21,696	₹5,417	₹16,278	-	₹22,92,707
24	₹21,696	₹5,456	₹16,240	₹1,00,000	₹21,87,251
25	₹21,696	₹6,203	₹15,493	-	₹21,81,049
26	₹21,696	₹6,246	₹15,449	-	₹21,74,802
27	₹21,696	₹6,291	₹15,405	-	₹21,68,512
28	₹21,696	₹6,335	₹15,360	-	₹21,62,176
29	₹21,696	₹6,380	₹15,315	-	₹21,55,796
30	₹21,696	₹6,425	₹15,270	-	₹21,49,371
31	₹21,696	₹6,471	₹15,225	-	₹21,42,900
32	₹21,696	₹6,517	₹15,179	-	₹21,36,383
33	₹21,696	₹6,563	₹15,133	-	₹21,29,820
34	₹21,696	₹6,609	₹15,086	-	₹21,23,211
35	₹21,696	₹6,656	₹15,039	-	₹21,16,555
36	₹21,696	₹6,703	₹14,992	₹1,00,000	₹20,09,852
37	₹21,696	₹7,459	₹14,236	-	₹20,02,393
38	₹21,696	₹7,512	₹14,184	-	₹19,94,881
39	₹21,696	₹7,565	₹14,130	-	₹19,87,315
40	₹21,696	₹7,619	₹14,077	-	₹19,79,697
41	₹21,696	₹7,673	₹14,023	-	₹19,72,024
42	₹21,696	₹7,727	₹13,969	-	₹19,64,297
43	₹21,696	₹7,782	₹13,914	-	₹19,56,515
44	₹21,696	₹7,837	₹13,859	-	₹19,48,678
45	₹21,696	₹7,892	₹13,803	-	₹19,40,786
46	₹21,696	₹7,948	₹13,747	-	₹19,32,837
47	₹21,696	₹8,005	₹13,691	-	₹19,24,833
48	₹21,696	₹8,061	₹13,634	₹1,00,000	₹18,16,771
49	₹21,696	₹8,827	₹12,869	-	₹18,07,944
50	₹21,696	₹8,889	₹12,806	-	₹17,99,055
51	₹21,696	₹8,952	₹12,743	-	₹17,90,103
52	₹21,696	₹9,016	₹12,680	-	₹17,81,087
53	₹21,696	₹9,080	₹12,616	-	₹17,72,008
54	₹21,696	₹9,144	₹12,552	-	₹17,62,864
55	₹21,696	₹9,209	₹12,487	-	₹17,53,655
56	₹21,696	₹9,274	₹12,422	-	₹17,44,381
57	₹21,696	₹9,340	₹12,356	-	₹17,35,042
58	₹21,696	₹9,406	₹12,290	-	₹17,25,636
59	₹21,696	₹9,472	₹12,223	-	₹17,16,164
60	₹21,696	₹9,539	₹12,156	₹1,00,000	₹16,06,624
72	₹21,696	₹11,148	₹10,547	₹1,00,000	₹13,77,902
84	₹21,696	₹12,899	₹8,797	₹1,00,000	₹11,28,963
96	₹21,696	₹14,805	₹6,891	₹1,00,000	₹8,58,020
108	₹21,696	₹16,879	₹4,817	₹1,00,000	₹5,63,129
120	₹21,696	₹19,136	₹2,559	₹1,00,000	₹2,42,171
132	₹21,696	₹14,437	₹102	-	₹0

About Loan Prepayment

What is Loan Prepayment?

Benefits of Loan Prepayment

Significant reduction in total interest payable
Reduced loan tenure - become debt-free faster
Improved credit score as you pay off debt
Mental peace and financial freedom
Better cash flow in future as EMI burden reduces earlier
Save money that can be invested elsewhere

Types of Prepayment Options

Part-Prepayment: Pay a portion of the loan principal in addition to regular EMI

Full Prepayment: Clear the entire outstanding loan amount at once

Reduce EMI: Keep tenure same but reduce monthly EMI after prepayment

Reduce Tenure: Keep EMI same but close loan earlier (recommended)

When to Prepay Your Loan?

Early in the tenure: Maximum interest savings in initial years
After receiving bonus/windfall: Use unexpected income wisely
When interest rates are high: More impactful savings
Before investing in other assets: Guaranteed returns equal to loan interest rate
When you have surplus cash: Better than keeping idle in savings account

Important Considerations

Check for prepayment charges: Some banks charge 2-3% penalty on prepayment
Maintain emergency fund: Don't exhaust all savings for prepayment
Tax benefits: Consider loss of tax deduction on interest under 80C and 24(b)
Alternative investments: If you can earn more than loan interest rate, invest instead
Loan tenure: Prepayment is most beneficial in first half of loan tenure
Document properly: Keep prepayment receipts and updated loan statements

Prepayment Strategy Tips

💡 Yearly Prepayment: Make annual prepayments from bonus or increment

💡 Increase with Income: Gradually increase prepayment amount each year

💡 Choose Tenure Reduction: Always opt to reduce tenure rather than EMI

💡 Start Early: Even small prepayments in initial years make big difference

Example Scenario

Loan: ₹25 lakhs at 8.5% for 20 years

• Monthly EMI: ₹21,927

• Total Interest (Regular): ₹27.63 lakhs

With ₹1 lakh yearly prepayment from year 1:

• Total Interest Paid: ₹17.83 lakhs

• Interest Saved: ₹9.80 lakhs

• Tenure Reduced: 20 years → 13.2 years (6.8 years saved!)

💰 Pro Tips for Maximum Savings

• Prepay in the first 5 years for maximum impact
• Use bonuses and increments strategically for prepayment
• Choose tenure reduction over EMI reduction
• Compare prepayment savings with investment returns before deciding
• Consider loan refinancing if better rates are available
• Always maintain 6-12 months emergency fund before prepaying

Loan Prepayment Calculator

Loan Details

Prepayment Details

Total Savings

Without vs With Prepayment

Key Metrics

Savings Breakdown

Payment Schedule Preview

About Loan Prepayment

What is Loan Prepayment?

Benefits of Loan Prepayment

Types of Prepayment Options

When to Prepay Your Loan?

Important Considerations

Prepayment Strategy Tips

Example Scenario

💰 Pro Tips for Maximum Savings

Loading...

Loan Prepayment Calculator

Loan Details

Prepayment Details

Total Savings

Without vs With Prepayment

Key Metrics

Savings Breakdown

Payment Schedule Preview

About Loan Prepayment

What is Loan Prepayment?

Benefits of Loan Prepayment

Types of Prepayment Options

When to Prepay Your Loan?

Important Considerations

Prepayment Strategy Tips

Example Scenario

💰 Pro Tips for Maximum Savings