Prepayment Calculator
Calculate how much you can save by making prepayments on your loan. Reduce interest costs and shorten your loan tenure.
Loan Details
Loan Type
Home Loan
Loan Amount
₹30,00,000
₹
Interest Rate
8.5%
%
Loan Tenure
20 years
years
Current EMI
₹26,045
₹
Prepayment Details
Prepayment Amount
₹1,00,000
₹
Prepayment Frequency
One-time
Start Prepayment After
1 year
years
Total Interest Saved
₹3,42,150
By making prepayment of ₹1,00,000
Original Loan
Total Interest
₹32,50,800
Loan Tenure
20 years
Total Payment
₹62,50,800
With Prepayment
New Interest
₹29,08,650
New Tenure
18.4 years
Total Payment
₹59,08,650
Savings Breakdown
₹0
Monthly EMI (no change)
1.6 years
Tenure Reduced
10.5%
Interest Reduced
342%
Return on Prepayment
Prepayment Scenarios
| Prepayment Amount | Interest Saved | Tenure Reduced | Effective ROI |
|---|
Smart Prepayment Tips
Make prepayments early in the loan tenure for maximum savings
Check your loan agreement for prepayment charges
Consider prepaying high-interest loans first
Use bonuses, tax refunds, or windfalls for prepayments
About Loan Prepayment
Prepayment is the process of paying extra money towards your loan principal, which reduces the outstanding balance and saves you interest over the loan tenure.
How Prepayment Saves You Money
- Reduces Principal: Every extra payment reduces the principal amount on which interest is calculated
- Saves Interest: Less principal means less interest accrual over time
- Shortens Tenure: The loan gets paid off faster than the original schedule
- Improves Financial Freedom: Become debt-free sooner and save for other goals