DeskTray

Loan Prepayment Calculator

Find out how much interest a part-payment saves and how many years earlier your loan will close. Try a one-time lump sum, a small extra amount every month, or a yearly bonus payment.

Runs in your browser. Nothing is uploaded Free, no sign-up Works on mobile
₹
30 Lakh
%
years
₹
2 Lakh
Month number from today
₹
₹
After prepaying, reduce
Interest saved
₹6,87,516
Current EMI
₹26,035
Loan closes earlier by
2 yr 10 mo
Interest without prepayment
₹32,48,327
Interest with prepayment
₹25,60,812
  • Interest saved (21%)
  • Interest still payable (79%)

Banks cannot charge a prepayment penalty on floating-rate home loans taken by individuals (RBI rule). Fixed-rate loans may carry a fee.

How to calculate home loan prepayment savings

  1. Enter your outstanding loan amount, interest rate and remaining tenure.
  2. Add a one-time prepayment and the month you plan to make it, and/or a regular monthly or yearly extra payment.
  3. Choose whether the bank should reduce your tenure or your EMI after the prepayment.
  4. See the interest saved and how much earlier the loan closes.

Frequently asked questions

Is it better to reduce EMI or tenure after prepayment?

Reducing the tenure saves much more interest because the EMI stays the same and the extra money goes entirely towards principal. Reduce the EMI only if you need lower monthly outgo.

Do banks charge a penalty for prepaying a home loan?

RBI does not allow banks and housing finance companies to charge prepayment or foreclosure penalties on floating-rate home loans taken by individuals. Fixed-rate loans and business loans may have charges.

When is the best time to prepay a loan?

As early as possible. In the first years of a loan most of each EMI is interest, so every rupee prepaid early saves the most interest.

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