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Loan Prepayment Calculator

See how much you save by making extra payments on your loan

Last Updated: July 2026
Original loan principal
Loan interest rate
Original loan tenure
Extra payment every year
Choose how prepayment affects your loan
Interest Saved
—
With prepayment
New Tenure
—
Reduced by prepayment
Total Saved
—
Interest + time saved

Balance Comparison: With vs Without Prepayment

Yearly Summary

YearPrincipalInterestTotal PaidBalance

Monthly Amortization Schedule

MonthEMIPrincipalInterestBalance

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What Is a Loan Prepayment Calculator?

A Loan Prepayment Calculator shows the impact of making extra payments on your loan. Even modest annual prepayments can save lakhs in interest and years off your tenure. This calculator compares scenarios with and without prepayment.

Choose between reducing your tenure (saves more interest) or reducing your EMI (lowers monthly burden). The chart shows how your outstanding balance decreases faster with prepayment.

Frequently Asked Questions

Should I prepay my loan or invest?
If your loan rate exceeds your expected investment return, prepay. At 8.5% home loan vs 12% equity returns, investing may be better. At 14% personal loan, prepayment almost always wins. Consider tax implications too.
Reduce tenure vs reduce EMI - which is better?
Reducing tenure saves more interest because the outstanding balance reduces faster. Reducing EMI gives lower monthly burden but costs more in total interest. If you can afford the original EMI, always choose tenure reduction.
Is there a penalty on prepayment?
Floating-rate loans (home, car, personal) have zero prepayment penalty per RBI. Fixed-rate loans may charge 2-5%. Always check your loan agreement before making prepayments.
How often should I make prepayments?
Annual prepayments are most practical — use your bonus or tax refund. Some borrowers make semi-annual prepayments. Even ₹50,000 annual prepayment on a ₹30L home loan can save ₹15L+ in interest over 20 years.

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Found This Useful?

Even small prepayments can save lakhs in interest.

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