Loan Prepayment Calculator
See how much interest a lump-sum prepayment saves you.
Assumes the same EMI continues after prepayment, so the loan ends earlier. Most floating-rate home loans allow free part-prepayments.
How it works
We rebuild your full repayment schedule with the lump sum applied in the chosen year, keeping the same EMI. Because the balance drops, later EMIs carry less interest — the loan ends earlier and you save the tail-end interest.
Example
On a ₹25 lakh, 20-year loan at 8.5%, a ₹2 lakh prepayment in year 5 can save several lakhs in interest and cut years off your tenure. Try your own numbers above.
FAQs
Is there a charge for prepayment?
Floating-rate home loans in India have no prepayment or foreclosure charges by RBI rule. Fixed-rate loans and some personal loans may charge a small fee — check your loan letter.
Part-prepay or fully close the loan?
Part-prepayments early in the tenure save the most interest per rupee. Fully closing frees your EMI but keep an emergency fund first.
When does prepayment save the most?
Early in the loan, when EMIs are mostly interest. A prepayment in year 2 saves far more than the same amount in year 15.