See how much interest you'll save — and how much sooner you'll be loan-free — by making a one-time prepayment.
This calculator compares two scenarios at the same EMI:
The interest saved is the difference between total interest paid in scenario 1 versus scenario 2. This approach (keeping EMI constant, reducing tenure) generally saves more interest than the alternative of keeping the tenure the same and reducing the EMI instead.
Reducing the tenure (keeping EMI the same) saves more total interest than reducing the EMI (keeping tenure the same), because you clear the principal faster. This calculator shows the tenure-reduction approach, which is usually the better choice if you can afford the current EMI.
For floating-rate home loans, RBI rules prohibit banks from charging a prepayment penalty to individual borrowers. Fixed-rate loans and some personal/car loans may still carry a prepayment charge — check your loan agreement.
Prepaying early in the loan tenure saves more interest than prepaying later, because more of your outstanding balance is still subject to interest for a longer remaining period. Even a single early prepayment can meaningfully cut your total interest cost.
This depends on your loan's interest rate versus your expected investment returns. If your loan rate is higher than what you could reliably earn elsewhere after tax, prepayment is usually the safer, more certain choice — but consider keeping some emergency savings before prepaying aggressively.
Yes, many lenders allow partial prepayments at any time without restriction (for floating-rate loans). Multiple smaller prepayments over time can achieve similar interest savings to one larger prepayment, spread across your cash flow.
If you've received a bonus, matured an investment, or simply saved up extra cash, prepaying part of your loan can meaningfully cut the total interest you pay — especially on long-tenure loans like home loans, where interest makes up a large share of early payments.
Use this calculator to see exactly how much you'd save and how much sooner you'd be debt-free, based on when you make the prepayment. Generally, the earlier in the loan tenure you prepay, the greater the savings — try adjusting the "months" field to see this effect for yourself.
