Loan Prepayment Calculator

See how much interest a part-prepayment saves — and how many months it cuts.

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The short answer

Prepaying ₹5 lakh in year one of a ₹50 lakh home loan at 8.75% saves roughly ₹14 lakh in interest and cuts over 2 years off the tenure. The same ₹5 lakh prepaid in year 15 would save a fraction of that — timing matters more than amount.

How to use the loan prepayment calculator

  1. Enter your loan details.
  2. Enter the prepayment amount and timing.
  3. See interest saved and months cut.

Loan Prepayment Calculator — FAQs

Is prepaying always smart?

Almost always for high-rate loans. The exception: if you can earn reliably more after tax elsewhere (say 12%+ in equity over the long term), investing the surplus can win.

Prepay early or late in the tenure?

Early — dramatically so. Interest is front-loaded, so early prepayments kill the most expensive interest first.

Will the bank charge me for prepaying?

Floating-rate home loans: no charges for individuals (RBI rule). Fixed-rate loans and personal/auto loans may charge 2–5%.

Lump sum once a year vs small extra EMIs?

Both work; what matters is total prepaid and timing. One annual bonus prepayment is easier to stick with.

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