About the Loan prepayment calculator
Prepaying means paying more than the scheduled EMI. The extra goes straight to the principal, so less interest builds up and the loan ends sooner.
How the Loan prepayment calculator works
The calculator keeps the original EMI and adds your extra payment every month from the first instalment. It counts the months until the balance is repaid and compares total interest with the original schedule.
Worked example
- Loan amount
- ₹25,00,000
- Annual interest rate
- 9%
- Time period
- 20 years
- Extra monthly payment
- ₹5,000
Example inputs
- Original monthly EMI
- ₹22,493.15
- Interest saved
- ₹11,82,873.35
- New repayment term
- 154 months
- Months saved
- 86 months
Calculated result
Why use a Loan prepayment calculator?
- See how many months a regular prepayment saves.
- Compare prepaying with keeping the money invested.
- Decide between reducing the term and reducing the EMI.
Loan prepayment calculator FAQs
Do lenders charge for prepayment?
RBI does not allow banks and NBFCs to charge prepayment or foreclosure penalties on floating-rate term loans to individuals for non-business purposes. Fixed-rate loans may carry a charge; check your loan agreement.
Is it better to reduce the term or the EMI?
Reducing the term usually saves more interest. Reducing the EMI eases the monthly budget. The calculator models a shorter term.
Can I prepay a lump sum instead?
This calculator models a regular monthly extra. A one-time prepayment saves interest in the same way, from the month it is made.
Does prepaying affect tax deductions?
It can reduce interest you could otherwise claim under the old tax regime. Weigh that against the interest saved.