Loan Prepayment Calculator
See how much interest and tenure you save by prepaying a lumpsum on your loan.
Your inputs
Assumes a one-time prepayment made now, with your EMI kept unchanged so the tenure shortens instead.
Estimates only. Figures are indicative and do not constitute financial advice.
About the Loan Prepayment Calculator
Got a bonus or windfall and wondering if prepaying your loan is worth it? "Loan prepayment calculator" is what people search to see the actual numbers rather than just a vague sense that 'paying off debt early is good' — because the real savings depend heavily on how much interest remains on your loan and how early in the tenure you prepay.
This calculator takes your outstanding loan, keeps your EMI the same after a lumpsum prepayment (so your tenure shortens instead — generally the better strategy for maximizing interest savings), and shows exactly how many months you shave off and how much total interest you avoid. Prepayment matters most early in a loan's life, when a larger share of each EMI is still going toward interest rather than principal. This is useful for deciding whether to prepay a home or personal loan with a bonus or matured investment, versus investing that money elsewhere — compare the interest rate you're saving against what you could realistically earn investing the same amount instead.
How to use this calculator
- Enter your outstanding loan amount, rate, and remaining tenure.
- Enter your planned prepayment amount.
- See your interest saved and reduced tenure.
Frequently asked questions
›Does prepayment reduce EMI or tenure?
You can choose either — reducing tenure (keeping EMI the same, which this calculator assumes) generally saves more total interest than reducing EMI while keeping the original tenure.
›When is the best time to prepay a loan?
Earlier in the loan tenure, since a larger portion of your EMI goes toward interest in the early years — prepaying the same amount later in the tenure saves less interest.
›Are there charges for prepaying a loan?
Floating-rate home loans generally have no prepayment penalty in India per RBI guidelines, but fixed-rate loans and some personal/business loans may charge a prepayment fee — check your loan agreement.
Related calculators
Read the full guide
Should You Prepay Your Loan? What It Actually Saves