Pocketools

Loan Prepayment Calculator

See how much interest and how many EMIs a part-prepayment saves on your loan.

Loans Runs in your browser
Your loan today

The balance still owed, from your loan statement — not the original loan amount.

Prepayment

Floating-rate loans taken by individuals cannot carry a prepayment charge in India.

What you save

Enter your loan and prepayment

The interest saved, the EMIs or months cut and a side-by-side balance schedule appear here.

Runs entirely in your browser. Your data isn't uploaded — this page makes no network request with anything you type or upload, which you can verify in your browser's network tab. How this works.

What is the Loan Prepayment Calculator?

A loan prepayment calculator shows what happens when you pay more than your EMI. Enter the principal still outstanding on your home, car or personal loan, the interest rate and the tenure left, then the amount you want to prepay — once, or every year — and it compares the loan with and without the prepayment side by side.

You choose what the bank does with the extra money: keep your EMI the same and close the loan sooner, or keep the tenure and lower the EMI. The calculator shows the interest saved either way, how many EMIs disappear or how much smaller each one becomes, and the outstanding balance at the end of every year. If your loan carries a prepayment charge, add it to see your net saving. Everything is calculated in your browser.

How to use it

  1. Enter the outstanding principal, interest rate and remaining tenure from your loan statement.
  2. Enter the prepayment amount and whether it is a one-time or yearly payment.
  3. Set the month of the (first) prepayment, counting from today.
  4. Choose whether to shorten the loan or lower the EMI after prepaying.
  5. Read the interest saved and the year-end balance comparison; press Copy for a summary.

Example

A one-time ₹2 lakh prepayment on a ₹30 lakh home loan, keeping the EMI unchanged.

Inputs
Outstanding:   ₹30,00,000
Rate:          8.5% a year
Tenure left:   20 years
Prepayment:    ₹2,00,000 once, in month 12
Strategy:      Keep the EMI, shorten the loan
Result
EMI:             ₹26,035 (unchanged)
Interest saved:  ₹6,87,516
Tenure:          20 yr → 17 yr 2 mo (34 fewer EMIs)

Features

  • One-time or yearly part-prepayments
  • Reduce tenure or reduce EMI, the two options banks offer
  • Interest saved, EMIs cut or new EMI, calculated month by month
  • Optional prepayment charge, with the net saving after it
  • Year-end outstanding balance with and without prepaying
  • Works for home, car, education and personal loans
  • Nothing is uploaded — your loan details stay in your browser

Frequently asked questions

Is it better to reduce the tenure or the EMI?
Reducing the tenure saves more interest, because your EMI keeps attacking the principal at the same pace. On a ₹30 lakh loan at 8.5% with 20 years left, a single ₹2 lakh prepayment after a year saves ₹6,87,516 in interest and 34 EMIs if you keep the EMI, but only about ₹2 lakh if you lower the EMI instead. Choose a lower EMI only if you need the monthly cash flow.
Is there a penalty for prepaying a home loan?
Not on floating-rate loans taken by individuals: the RBI does not allow banks or NBFCs to charge foreclosure or part-prepayment fees on them. Fixed-rate loans and business loans may carry a charge, often 2–4% of the amount prepaid; enter it to see your net saving.
When is the best time to prepay?
As early as you can. Interest is charged on the outstanding balance, which is highest in the early years, so a prepayment in year two saves far more than the same amount in year fifteen. Try moving the prepayment month to see the difference.
Should I prepay my loan or invest the money?
Prepaying earns you a guaranteed return equal to your loan rate. If you can reliably earn more after tax elsewhere, investing may come out ahead — but keep in mind the tax benefits on home loan interest and principal under the old regime, and keep an emergency fund before prepaying.
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