Loan Prepayment Calculator
Calculate how much interest you can save and how many months or years you can cut off your loan tenure by making a part-prepayment on your home or personal loan.
What Is a Loan Prepayment Calculator?
A Loan Prepayment Calculator helps borrowers estimate the substantial financial savings achieved by paying a lump sum toward their loan principal. It calculates the exact reduction in total interest payable and shows how much earlier your loan will close if you choose to reduce your tenure.
Reduce Tenure vs Reduce EMI: Which Is Better?
| Strategy | How It Works | Total Interest Savings | Best For |
|---|---|---|---|
| Reduce Tenure (Recommended) | Keep monthly EMI same, shorten tenure | Maximum (saves lakhs in interest) | Borrowers with stable monthly cash flow |
| Reduce EMI | Keep tenure same, lower monthly EMI | Moderate | Borrowers needing immediate monthly budget relief |
Prepayment Calculation Example
Consider an outstanding home loan balance of ₹40 Lakhs at 8.5% p.a. with 15 years remaining. Making a single lump-sum prepayment of ₹5,00,000 and choosing to reduce tenure results in:
Frequently Asked Questions
Related Calculators
Other calculators you might find useful.
EMI Calculator
Calculate monthly EMI, total interest, and total payment for home, car, or personal loans.
Loan Amortization Calculator
Generate a complete month-by-month principal and interest loan breakdown schedule.
Future Value Calculator
Calculate future value of a single present investment compounding at a fixed interest rate.
Present Value Calculator
Calculate current discounted present value of a future cash sum.
Compound Interest Calculator
Calculate compound interest growth with annual, semi-annual, quarterly, or monthly compounding.