Loan Prepayment Calculator India - Interest Saved & Time Reduced

Formula

Compare normal loan vs prepayment path

The calculator estimates your regular EMI, simulates monthly repayment, and compares it with a prepayment scenario.

Interest saved = Normal interest - Interest after prepayment

FAQ

What is loan prepayment?

Loan prepayment means paying extra money toward the outstanding loan principal. It can reduce total interest and sometimes shorten the loan tenure.

Should I reduce EMI or tenure after prepayment?

Reducing tenure usually saves more interest. Reducing EMI improves monthly cash flow, which may be useful if your budget is tight.

Is monthly prepayment better than lump-sum prepayment?

Both can help. Monthly prepayment builds discipline from salary, while lump-sum prepayment works well when you receive bonus, arrears, or maturity proceeds.

Which loans should I prepay first?

Generally, prepay high-interest loans first, such as personal loans or credit card debt. For home loans, compare interest saved with tax benefits and investment returns.

Does prepayment always save interest?

Yes, if it reduces principal and there are no heavy charges. The savings depend on interest rate, remaining tenure, and how early the prepayment is made.

Are there charges for loan prepayment?

Some loans may have foreclosure or part-payment charges, especially fixed-rate or non-home loans. Check your lender's terms before making a large payment.

Should I prepay loan or invest the money?

If loan interest is high or cash flow feels stressed, prepayment can be attractive. If loan interest is low and goals are underfunded, investing may also make sense.

How often should I review prepayment strategy?

Review after salary hikes, bonus payouts, rate changes, or when your emergency fund is complete. Prepayment works best when it does not weaken liquidity.

Loan prepayment calculator for interest saved

How much interest can you save?