Loan Prepayment Calculator
This loan prepayment calculator shows exactly what happens when you make a one-time lump-sum payment toward your loan's principal — how much interest it saves, and how many months it cuts off the remaining tenure. Enter your loan details, the prepayment amount, and when you plan to make it, to see the real numbers rather than guessing whether prepaying is worth it.
The loan amount you originally borrowed (or your current outstanding balance, if the loan has already been running).
The reducing-balance rate on your loan.
The full tenure you originally agreed with your lender.
The one-time extra amount you plan to pay toward the principal, on top of your normal EMIs.
How far into the loan you make the prepayment. Earlier prepayments save far more interest, since more principal remains outstanding.
Interest saved
सेव करने के लिए लॉग इन करें₹11,16,390
Money you simply never pay, because a smaller balance accrues less interest for the rest of the loan — e.g. ₹11.2 lakh saved from a ₹5 lakh prepayment made 3 years in.
How much sooner the loan is fully repaid if you keep paying the same EMI after prepaying, instead of reducing the EMI.
The loan's revised payoff time after the prepayment — compare this against the original tenure you entered above.
What you'll pay in interest after prepaying, versus the original total interest shown if you hadn't prepaid at all.
Frequently asked questions
Should I prepay my loan or invest the money instead?+
Compare your loan's interest rate against what you can reliably earn after tax elsewhere. Prepaying a 9% loan is a guaranteed, tax-free 9% return; if your investments reliably earn more than that after tax, investing wins — otherwise prepaying is the safer, often better choice.
Is it better to reduce my EMI or reduce my tenure after prepaying?+
Reducing the tenure while keeping the same EMI saves far more total interest, because the loan closes sooner and stops accruing interest altogether. Reducing the EMI instead eases monthly cash flow but the loan runs its full original length, accruing more interest along the way.
Does prepaying early always save more than prepaying later?+
Yes — for an identical prepayment amount, prepaying earlier always saves more interest, because more principal is outstanding and accruing interest at that point. The calculator above lets you compare exact timings for your own numbers.
Are there penalties for prepaying a loan?+
It depends on the loan type and country. Indian floating-rate home loans for individuals have none by regulation; UK fixed-rate mortgages often charge an Early Repayment Charge beyond an annual overpayment allowance; check your specific loan agreement before prepaying.
What is the difference between prepayment and overpayment?+
Prepayment (modelled here) is a one-time lump sum paid at a specific point in the loan. Overpayment is a smaller extra amount added to every regular payment from the start — see our mortgage overpayment calculator for that scenario.
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