Loan Prepayment Calculator

Enter Loan Details

How this calculator helps you

Making extra payments towards your loan can significantly reduce your interest costs and loan term. This calculator shows you exactly how much you can save with prepayments.

Loan Amount (₹)

Interest Rate (% per year)

Loan Term (Years)

Prepayment Amount (₹)

Prepayment Frequency

Start Prepayments After (Months)

Benefits of Prepayment

Lower Total Interest
Reduce the total interest paid over the loan tenure, potentially saving lakhs of rupees
Shorter Loan Term
Become debt-free faster by reducing your loan tenure by months or even years
Greater Financial Freedom
Improve your debt-to-income ratio and gain more financial flexibility in the future
Peace of Mind
Reduce financial stress by lowering your overall debt burden over time

Important Note

Always check if your loan has any prepayment penalties before making extra payments. Some lenders charge fees for early repayment which could offset your potential savings.

Your Prepayment Benefits

Monthly EMI

₹0

Total Interest (Without Prepayment)

₹0

Total Interest (With Prepayment)

₹0

Interest Savings

₹0

Original Loan Term

0 years

New Loan Term

0 years

Time Saved

0 years, 0 months

Total Prepayment Amount

₹0

Amortization Schedule (showing first 12 months)

Year	Month	EMI	Principal	Interest	Prepayment	Balance

Understanding Loan Prepayment

Benefits of Loan Prepayment

Making prepayments on your loan offers several advantages:

Reduces the total interest paid over the loan tenure
Shortens your loan term, helping you become debt-free faster
Decreases your overall debt burden
Improves your debt-to-income ratio over time
Provides greater financial flexibility in the future

Types of Prepayment Strategies

There are several effective prepayment strategies you can adopt:

Regular small prepayments: Making small additional payments every month can add up to significant savings over time.
Annual lump sum payments: Using annual bonuses or tax refunds to make larger yearly prepayments.
Bi-weekly payments: Making half of your monthly payment every two weeks, which results in 13 full payments per year instead of 12.
Rounding up payments: Simply rounding up your payment to the nearest thousand can make a difference.

Important Considerations

Before making loan prepayments, consider these factors:

Prepayment penalties: Some loans charge fees for early repayment. Check your loan agreement.
Emergency fund: Ensure you have adequate emergency savings before diverting extra funds to loan prepayment.
Higher interest debts: Consider paying off higher interest debts first (like credit cards) before making prepayments on lower interest loans.
Tax implications: For home loans, prepayment might reduce your tax benefits from interest deductions. Consult a tax advisor.