Money calculator

Loan prepayment calculator

Paying a little extra on a loan can cut years off it. See how much interest you save with a one-time payment, a monthly top-up, or both.

Your loan

Loan amount still to pay (₹)

Interest (% per year)

Years left

Extra payments

One-time payment (₹)

Paid in month

Extra every month (₹)

After the one-time payment

Keep EMI, finish sooner Lower my EMI

Interest you save

–

–EMI now

–EMI after prepaying

–new time to repay

–sooner than planned

Balance left, year by year

How prepayment saves interest

Each month, interest is charged on the balance still owed. A prepayment goes straight to reducing that balance, so every later month is charged less interest. Early in a loan most of the EMI is interest, which is why prepaying early saves the most.

Keep EMI, finish sooner usually saves more interest.
Lower my EMI eases your monthly budget but saves less.

Do banks charge for prepayment?

Banks in India do not charge prepayment penalties on floating-rate home loans taken by individuals. Fixed-rate loans and some personal or car loans may have a charge, so check your loan agreement.

Should I prepay or invest instead?

Compare the loan rate with what you could earn after tax. Prepaying gives a certain "return" equal to the loan's interest rate. Keep an emergency fund before prepaying.