Loan Prepayment Calculator — Interest Saved & Tenure Cut
See what a lump-sum prepayment saves: shorter tenure vs lower EMI, compared.
✓ updated June 2026
Option A — keep the same EMI (recommended)
Option B — keep the same tenure
Keeping the EMI unchanged saves 379,125 more interest than reducing the EMI, because the balance falls faster while interest is front-loaded.
Results are estimates for information only, not financial advice. See how we build and verify our calculators.
Enter your outstanding balance, rate, remaining tenure and the lump sum you want to prepay. The calculator compares both options banks offer: keep the same EMI and finish months early, or keep the tenure and lower the EMI — showing the interest saved by each, side by side. Keeping the EMI almost always saves far more, because prepaid money hits the balance while interest is front-loaded.
How to use the Loan Prepayment Calculator
- Enter your outstanding balance, interest rate and remaining months.
- Enter the one-time prepayment amount.
- Compare Option A (same EMI, shorter tenure) with Option B (same tenure, lower EMI).
Frequently asked questions
Should I reduce the EMI or the tenure?
Reduce the tenure (keep the EMI) if you can afford to — the balance falls faster while interest is at its highest, so total interest saved is usually several times larger than the same-tenure option.
Are there prepayment penalties?
Floating-rate home loans to individuals in India carry no prepayment penalty by RBI rules. Fixed-rate and personal loans may charge 2–5% — check your agreement and net it against the savings.
When does prepaying make the most difference?
Early in the loan, when most of each EMI is interest. The same lump sum prepaid in year 2 saves far more than in year 12.