Loan Prepayment Calculator
Discover how extra monthly installments, lump-sum part-payments, or annual bonus prepayments can eliminate years from your debt and save lakhs of rupees in compound interest.
Adjust Parameters
Step 1: Original Loan Terms
Current outstanding or original sanction amount.
Current interest rate on your loan.
Remaining duration in years.
Step 2: Prepayment Method
Extra cash added to your EMI payment every month.
Saves 36.1% of total loan interest
Loan ends in 13.7 yrs instead of 20 yrs
Capital paid directly towards principal
Pure interest money kept in your pocket
Breakdown
Total: ₹62,48,327| Category | Amount | Percentage |
|---|---|---|
| Principal Repaid | ₹30,00,000 | 48.0% |
| Revised Interest Paid | ₹20,75,228 | 33.2% |
| Interest Saved | ₹11,73,099 | 18.8% |
Yearly Balance & Interest Comparison
Original Loan vs Accelerated Prepayment Schedule
| Year | Orig. Balance | Prepaid in Year | Revised Balance | Orig. Cum. Interest | Rev. Cum. Interest |
|---|---|---|---|---|---|
| Yr 1 | ₹29,40,293 | ₹60,000 | ₹28,77,896 | ₹2,52,710 | ₹2,50,316 |
| Yr 2 | ₹28,75,309 | ₹60,000 | ₹27,44,999 | ₹5,00,143 | ₹4,89,839 |
| Yr 3 | ₹28,04,580 | ₹60,000 | ₹26,00,355 | ₹7,41,831 | ₹7,17,615 |
| Yr 4 | ₹27,27,600 | ₹60,000 | ₹24,42,925 | ₹9,77,267 | ₹9,32,605 |
| Yr 5 | ₹26,43,815 | ₹60,000 | ₹22,71,581 | ₹12,05,897 | ₹11,33,681 |
| Yr 6 | ₹25,52,625 | ₹60,000 | ₹20,85,091 | ₹14,27,125 | ₹13,19,611 |
| Yr 7 | ₹24,53,374 | ₹60,000 | ₹18,82,117 | ₹16,40,289 | ₹14,89,057 |
| Yr 8 | ₹23,45,351 | ₹60,000 | ₹16,61,202 | ₹18,44,682 | ₹16,40,562 |
| Yr 9 | ₹22,27,779 | ₹60,000 | ₹14,20,760 | ₹20,39,526 | ₹17,72,540 |
| Yr 10 | ₹20,99,815 | ₹60,000 | ₹11,59,066 | ₹22,23,977 | ₹18,83,266 |
| Yr 11 | ₹19,60,540 | ₹60,000 | ₹8,74,239 | ₹23,97,119 | ₹19,70,859 |
| Yr 12 | ₹18,08,954 | ₹60,000 | ₹5,64,237 | ₹25,57,948 | ₹20,33,277 |
| Yr 13 | ₹16,43,969 | ₹60,000 | ₹2,26,834 | ₹27,05,377 | ₹20,68,294 |
| Yr 14 | ₹14,64,402 | ₹35,000 | ₹0 | ₹28,38,226 | ₹20,75,228 |
| Yr 15 | ₹12,68,962 | — | ₹0 | ₹29,55,202 | ₹20,75,228 |
| Yr 16 | ₹10,56,247 | — | ₹0 | ₹30,54,902 | ₹20,75,228 |
| Yr 17 | ₹8,24,730 | — | ₹0 | ₹31,35,801 | ₹20,75,228 |
| Yr 18 | ₹5,72,749 | — | ₹0 | ₹31,96,237 | ₹20,75,228 |
| Yr 19 | ₹2,98,495 | — | ₹0 | ₹32,34,401 | ₹20,75,228 |
| Yr 20 | ₹0 | — | ₹0 | ₹32,48,321 | ₹20,75,228 |
How Loan Prepayment is Calculated
Transparent mathematical formulas and assumptions used across our financial engines.
Variables & Legend
Conventions & Assumptions
- Under Reserve Bank of India (RBI) guidelines, banks and NBFCs cannot charge foreclosure or prepayment penalties on individual floating-rate home loans.
- Prepayments made in the early years of a long tenure (years 1 to 7) yield the highest interest savings because the principal base is largest.
- Choosing 'Reduce Tenure' is almost always financially superior to 'Reduce EMI' because it stops interest compounding many years earlier.
- Always instruct your lender in writing to adjust prepayments directly towards principal reduction rather than advance EMI holding.
Frequently Asked Questions
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