Home Loan Pre-payment Tool
See how much interest you save by paying extra today
Tip: Paying earlier in your tenure saves more interest!
Total Interest Saved
₹16,16,308
≈ 29.9% of total interest cost
Tenure Reduced
48 Months
(4.0 Years)
New Total Tenure
16.0 Yrs
instead of 20 Yrs
How it works?
In the reducing balance method, early EMIs are mostly interest. A pre-payment directly reduces the **Principal Balance**, causing a massive drop in interest for all future months.
DISCLAIMER: These calculations are for illustrative purposes only and do not constitute professional financial advice. Actual returns or terms may vary based on market conditions or institution policies.
You might also need
Using the Loan Prepayment Calculator
Our powerful prepayment calculator for India help you see exactly how much interest you can save by making extra payments towards your loan. Prepaying even a small amount early in your tenure can save you Lakhs in interest and reduce your loan years.
Key Features
- •Calculates total interest savings from single or recurring prepayments
- •Compares 'Tenure Reduction' vs 'EMI Reduction' strategies
- •Provides a side-by-side view of your original vs revised loan schedule
- •Visualizes your debt-free date after considering prepayments
- •Handles Home Loans, Personal Loans, and Car Loans in India
- •Fast, interactive, and 100% free with no data storage
How to calculate Loan Prepayment Calculator
Step-by-step Guide & Informational Intent
- 1.Input your current 'Loan Balance' and 'Interest Rate'.
- 2.Enter the 'Remaining Tenure' in months or years.
- 3.Input the 'Prepayment Amount' you plan to pay.
- 4.Select your preferred benefit: 'Reduce Tenure' or 'Reduce EMI'.
- 5.Watch how your 'Total Interest Saved' and 'New Tenure' update instantly.
How the Calculation Works
The calculator applies your prepayment directly to the outstanding principal. This immediately reduces the base on which future monthly interest is calculated, creating a powerful compounding effect that shortens the loan life.
Important Assumptions
- • Prepayment is applied at the beginning of the next month
- • No prepayment penalties (as per current RBI norms for floating rates)
- • Interest rate remains constant throughout the remaining tenure
- • Assumes regular EMIs are continue to be paid on time
Interest Saving Examples
Created by MyIndianCalculator Team
Developed by a multidisciplinary team of financial analysts, medical professionals, and data engineers. Our algorithms are rigorously calibrated against official Indian standards (RBI, SEBI, ICMR, WHO) to ensure precision for your financial planning and health monitoring needs.
Embed this Calculator
Want to use this Loan Prepayment Calculator on your own website or blog? Copy the snippet below.
<iframe src="https://myIndianCalculator.com/embed/en/calculators/prepayment" width="100%" height="600" frameborder="0"></iframe>
Related Tools on MyIndianCalculator
Explore other helpful tools to plan your finances and health better:
Loan Prepayment Calculator FAQs
Our powerful prepayment calculator for India help you see exactly how much interest you can save by making extra payments towards your loan. Prepaying even a small amount early in your tenure can save you Lakhs in interest and reduce your loan years.