EMI vs Lumpsum Prepayment Calculator
Compare paying extra EMIs versus a one-time prepayment — see which saves more interest.
When you get a bonus, should you prepay your loan or invest it? A ₹5 lakh prepayment on a ₹50 lakh home loan at 8.75% in year one saves roughly ₹15 lakh in interest and cuts about 3 years off the tenure. Prepaying early in the loan always beats prepaying late.
How to use the emi vs lumpsum prepayment calculator
- Enter your loan details.
- Enter the lumpsum amount and when you’d pay it.
- Compare interest saved and tenure reduced.
EMI vs Lumpsum Prepayment Calculator — FAQs
Is prepayment better than investing the money?
Compare post-tax returns: prepaying an 8.75% loan equals a guaranteed 8.75% return. If you can reliably earn more after tax elsewhere, investing wins — otherwise prepay.
When is the best time to prepay?
As early as possible. A prepayment in year 2 of a 20-year loan saves far more interest than the same amount in year 15.
Are there prepayment charges?
Floating-rate home loans for individuals have zero prepayment charges by RBI rule. Fixed-rate loans and some personal loans may charge 2–5%.
Should I reduce EMI or tenure after prepaying?
Reducing tenure saves more interest. Reduce EMI only if your monthly cash flow is tight.
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