Loan Prepayment Calculator
Finance & InvestmentSee what paying extra saves in interest, and how much sooner the loan ends.
Runs entirely in your browser — nothing is uploaded
Features
- Either a bit extra every month or a single lump sum.
- Shows interest saved and months removed from the term.
- Frames the saving as the guaranteed return it is.
- Results update as you type, with no button to press.
How to use the Loan Prepayment Calculator
- 1Enter the outstanding loan, the rate and the remaining tenure.
- 2Choose extra monthly payments or a one-off lump sum.
- 3Read the interest saved and compare it against investing the same money.
Frequently asked questions
Does prepaying reduce my EMI or my tenure?
The tenure, unless you specifically ask the lender to recalculate the EMI. Shortening the tenure saves far more interest, which is why it is the default — and why you should think carefully before asking for the alternative.
Is it better to prepay a loan or invest the money?
Prepaying earns you a guaranteed, tax-free return equal to your loan rate. To beat prepaying an 8.5% home loan, an investment must reliably return more than 8.5% after tax — which is not a given. For a personal loan at 14%, prepaying almost always wins.
When is the best time to prepay?
As early as possible. Prepaying in year two of a twenty-year loan can save several times what the same amount saves in year fifteen, because it removes principal that would otherwise accrue interest for eighteen more years.
Are there prepayment charges?
On floating-rate home loans to individuals, the RBI prohibits them. Fixed-rate loans, and most personal and business loans, may carry a charge of 2–5% of the amount prepaid. Check the sanction letter before making a large payment.