Loans
Loan Prepayment Calculator
Shows the interest you save by making a lump-sum prepayment, either shortening your tenure or lowering your EMI.
Your details
₹
%
yrs
yrs
₹
Interest saved
₹11,10,946
New EMI
₹21,696
New tenure (years)
11
Prepaying ₹5,00,000 now cuts your remaining tenure to about 10.8 years (from 17 years), saving roughly ₹11,10,946 in interest.
How this is calculated
The outstanding balance at the point of prepayment is reduced by the prepayment amount, then either a new (shorter) tenure is solved for at the same EMI, or a new (lower) EMI is solved for at the same remaining tenure.
Frequently asked questions
Reduce tenure or reduce EMI — which saves more?
Reducing tenure while keeping the EMI the same almost always saves more total interest, since you clear the principal faster.
Are there prepayment charges?
For floating-rate loans to individuals, Indian regulations generally prohibit prepayment penalties; fixed-rate loans may still carry a charge — check your loan agreement.
Is it better to prepay or invest that money instead?
Compare your loan's interest rate against what you'd realistically earn investing — if your investment return net of risk and tax beats the loan rate, investing may win; if not, prepaying usually does.