Prepayment Planning

Loan Prepayment Calculator

See exactly how much time and interest you can cut off your loan by paying a little extra — whether that's an annual bonus, a couple of extra EMIs a year, or stepping up your EMI as your income grows. Works for home, car, personal, education, gold, and business loans — pick your loan type below.

Loan Details

Loan Type

Changes the starting amount, rate, tenure, and prepayment charge below to typical values for this loan type — all fully editable.

Loan Amount ₹50,00,000

Interest Rate (p.a.) 8.50%

Loan Tenure

Tenure20 yrs

Current EMI Auto

Calculated EMI: —

Loan / EMI Start Date

Used to show actual payoff dates below

Have a specific date in mind?

Use the Goal Planner to work backwards from a target date — it builds the cheapest strategy for you automatically.

Open Goal Planner →

Prepayment Strategy

After each prepayment

Shorten tenure keeps your EMI the same and finishes early. Reduce EMI keeps you on the original schedule but lowers what you owe each month.

Prepayment charge 0%

Floating-rate home loans in India can't legally be charged prepayment penalties — this is mainly for fixed-rate loans or other loan types.

Extra EMIs / year

Common with an annual bonus

Extra EMIs 1

Lump sum prepayment

Recurring, one-time, or a custom mix of payments

How often?

Amount ₹1,00,000

Which month, every year?

First prepayment: —

Round up my EMI

Small, painless extra principal every month

Round up to the nearest

Annual EMI step-up

Increase EMI as your salary grows

Step-up 5% / year

Interest You'll Save

₹0

0% less interest than the standard schedule

Loan Paid Off

0 yrs earlier

—

Original schedule—

With your strategy—

—

Standard Schedule

No prepayment

Monthly EMI—

Loan tenure—

Payoff date—

Total interest paid—

Total amount paid—

With Your Strategy

Optimised

Starting EMI—

Loan tenure—

Payoff date—

Total interest paid—

Total amount paid—

Prepay vs. Invest

Assumed investment return (p.a.) 12.00%

If You Prepay

—

Interest saved—

+ Freed-up EMI invested after payoff—

Total wealth at original payoff date—

If You Invest Instead

—

Same extra amounts invested (SIP)—

Loan paid offon original schedule

Compares both paths at your original (no-prepayment) payoff date.

Save & Compare Scenarios

Snapshot your current settings, tweak the sliders, then save again — up to 3, side by side.

Strategy used	Tenure	Total interest	Saved
No scenarios saved yet — save up to 3 to compare side by side

Outstanding Balance Over Time

Standard schedule

With your strategy

Year-wise Schedule (with strategy)

▶

Year	Opening Balance	EMI Paid	Extra Paid	Interest Paid	Closing Balance

Not ready to prepay this much? Compare refinance offers Coming soon

Frequently asked questions

Does prepaying a home loan actually save money?

Yes. A prepayment reduces your outstanding principal, which cuts the interest charged on every future EMI and usually shortens your loan tenure.

Should a prepayment reduce my tenure or my EMI?

Reducing the tenure typically saves the most interest, while reducing the EMI eases your monthly cash flow. This calculator lets you compare both outcomes.

Are there prepayment charges on home loans in India?

Floating-rate home loans taken by individuals are penalty-free to prepay under RBI rules. Fixed-rate loans and some other loan types may carry charges, so check your loan agreement.

When is the best time to prepay?

Earlier in the loan, when the interest portion of each EMI is highest. Prepayments made in the early years have the biggest impact on total interest saved.

Should I prepay my loan or invest the money?

It depends on your loan rate versus your expected post-tax investment return. This tool includes a prepay-vs-invest comparison, but consider speaking with a licensed financial advisor.