Loan Prepayment Calculator

See how much interest you save and how many years you cut off by prepaying your loan, with an extra monthly amount or a one-off lump sum.

//✂️ Loan Prepayment

✂️ Loan Prepayment

See what prepaying a loan actually saves. Add an extra amount each month or a one-off lump sum and compare the interest paid and the years knocked off.

₹
25 lakh
%
yrs

Your prepayment

₹
5 thousand
On top of the EMI, straight off the principal.
₹
Your EMI
₹21,696
Unchanged — prepayment shortens the loan instead
Interest saved
₹10,89,361
₹10.89 L — and you finish 7y 1m early
Without prepaying20 years · ₹27,06,939 interest
With prepaying12y 11m · ₹16,17,579 interest
Time saved7y 1m
Total outgo saved₹10,89,361
Every extra ₹5,000 a month removes the entire future interest that money would otherwise have carried — which is why a small prepayment saves so much more than it costs.

About Loan Prepayment Calculator

Prepaying a loan saves more than most people expect, because every rupee of prepayment removes not just that rupee of debt but all the future interest it would have accrued. On a long home loan, a modest extra payment each month can cut years off the term.

This calculator compares your original schedule against one with prepayments, and shows both the interest saved and the time saved.

How to use it

  1. Enter the loan amount, interest rate and original tenure.
  2. Add an extra amount you would pay each month, a one-off lump sum, or both. For a lump sum you can also set which month it lands in.
  3. Compare the two schedules: interest paid with and without prepaying, and how many years earlier the loan closes.

Frequently asked questions

Is it better to prepay or to invest the money instead?
Compare the loan rate against the return you would realistically earn after tax. Prepaying a loan is a guaranteed return equal to its interest rate, which is worth more than it looks against an uncertain market return. Do not prepay with money you might need — clear the emergency fund first.
Why does the timing of a lump sum matter so much?
Because it removes the interest that would have accrued on that amount for the remaining term. The same lump sum paid in year one saves considerably more than in year ten, which the calculator lets you verify directly.
Should I reduce the EMI or the tenure?
Reducing the tenure saves far more interest, because the debt clears sooner. Reducing the EMI eases monthly cash flow but keeps you in debt for the original term. This tool models the tenure-reduction approach.