Loan Prepayment Calculator

An extra EMI or a one-time lump sum — see exactly how much interest it saves and how many months it cuts from your loan, instantly.

Live — savings update as you type

What you still owe today (not the original loan).

Paid on top of the regular EMI, straight to principal.

E.g. a bonus — applied to principal immediately.

Your savings

Interest saved—
Loan shortened by—
Current EMI—
New payoff time—

Without prepayment

Pay for —

Total interest —

With prepayment

Pay for —

Total interest —

YearBalance (no prepay)Balance (with prepay)Ahead by

The full simulation runs on your device — your loan details are never uploaded.

Why Early Prepayment Is So Powerful

In a long amortizing loan, the early EMIs are mostly interest — on a 20-year home loan at 8.5%, roughly two-thirds of the first year's payments is interest alone. Every extra amount you send to the lender is applied to principal, and from that month forward interest is charged on a smaller balance. The effect snowballs: the same ₹5,000/month extra saves far more when started in year 1 than in year 10.

This calculator runs your real amortization schedule twice — once as-is, once with your extra monthly payment and/or a one-time lump sum — and reports the difference honestly: total interest saved, months cut, and a year-by-year balance race. Keep the EMI constant and shorten the tenure (the high-savings option most lenders allow). Compute your base EMI with the EMI Calculator, sanity-check affordability with the Loan Affordability Calculator, or compare clearing multiple debts with the Debt Payoff Calculator.

Worked example — ₹30 lakh @ 8.5%, 20 years left

ScenarioPayoff timeTotal interest
EMI only (₹26,035/month)240 months≈ ₹32.5 lakh
+ ₹5,000 extra every month≈ 184 months≈ ₹24.1 lakh
Saved≈ 4 years 8 months≈ ₹8.4 lakh

Figures are illustrative — run your own numbers above; results update live.

Frequently Asked Questions

How does prepaying a loan save interest?
Prepayments reduce the outstanding principal immediately, so every future month's interest is charged on a smaller balance. Early-tenure prepayments save the most because that's when interest dominates the EMI.
Is a lump sum better than increasing my EMI?
Mathematically both apply money to principal — earlier is better. A lump sum cuts the balance once, today; a higher EMI repeats the effect monthly. Enter both above to see their combined impact.
Do banks charge prepayment penalties?
Floating-rate home loans to individuals in India: no penalty (RBI rule). Fixed-rate and some personal/car loans: often 1–5% of the prepaid amount. US mortgages are usually penalty-free. Check your agreement — a penalty reduces but rarely eliminates the benefit.
Does prepaying reduce my EMI or my tenure?
Lenders offer both. Same-EMI-shorter-tenure saves far more interest and is what this tool models; lower-EMI-same-tenure eases cash flow but keeps interest running the full term.
Is my loan data uploaded anywhere?
No — the full month-by-month simulation runs in your browser. Nothing is sent, stored or logged.