Loan prepayment calculator
See how paying a little extra each month clears the loan years early.
Quick answer
A loan prepayment calculator shows how extra monthly payments or lump sums reduce total interest and loan tenure. Paying even ₹5,000 extra per month on a home loan can save lakhs and clear the loan years early.
Interest saved
Paying ₹5,000 extra a month clears the loan 53 months early.
- New tenure
- 187 months
- Months saved
- 53
Early prepayments hit the principal hardest — the sooner you start, the more you save.
Rates & rules checked on 15 June 2026 · based on FY 2025-26 (AY 2026-27).
What this tells you
Paying a little extra toward your loan each month, or a lump sum when you can, can knock years and lakhs of interest off — especially early in the tenure.
How it's calculated
We simulate the loan month by month with your extra payment applied to the principal, then compare the new interest and tenure against the original schedule.
Common questions
- Is there a penalty for prepaying?
- Floating-rate home loans to individuals have no prepayment penalty in India (RBI rule). Fixed-rate and some personal loans may charge a fee — check before you prepay.
- Prepay the loan or invest instead?
- Compare rates: if your loan rate is higher than what you'd reliably earn after tax, prepay. For an 8.5% home loan versus 12% equity, many choose to invest — but prepaying is a guaranteed, risk-free return.
Jargon, explained
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Sources
For general education, not personalised financial advice. Verify current rates and rules before acting — tax laws and interest rates change.