Loan Prepayment Calculator
Save lakhs in interest. Calculate how much you can save and how much faster you can close your loan by making part-payments.
Loan & Prepayment
Total Interest Saved
New Tenure
Original: 20 Years
Total Savings
Interest Saved + Prepayment
Prepayment Tip
Prepaying early in the tenure saves significantly more interest than prepaying later. Every ₹1 prepaid early can save up to ₹2-3 in interest.
Loan Balance Reduction
New Repayment Schedule
| Year | Principal Paid | Remaining Balance |
|---|---|---|
| Year 1 | ₹5,93,636 | ₹44,06,364 |
| Year 2 | ₹7,42,958 | ₹42,57,042 |
| Year 3 | ₹9,06,288 | ₹40,93,712 |
| Year 4 | ₹10,84,940 | ₹39,15,060 |
| Year 5 | ₹12,80,350 | ₹37,19,650 |
| Year 6 | ₹14,94,091 | ₹35,05,909 |
| Year 7 | ₹17,27,883 | ₹32,72,117 |
| Year 8 | ₹19,83,606 | ₹30,16,394 |
| Year 9 | ₹22,63,317 | ₹27,36,683 |
| Year 10 | ₹25,69,268 | ₹24,30,732 |
| Year 11 | ₹29,03,918 | ₹20,96,082 |
| Year 12 | ₹32,69,961 | ₹17,30,039 |
| Year 13 | ₹36,70,342 | ₹13,29,658 |
| Year 14 | ₹41,08,281 | ₹8,91,719 |
| Year 15 | ₹45,87,301 | ₹4,12,699 |
| Year 16 | ₹50,00,000 | ₹0 |
Loan Prepayment Guide
Prepaying your loan is one of the most effective ways to build wealth by reducing your liabilities. Even small, regular prepayments can lead to massive savings over a 15-20 year home loan.
Strategies for Prepayment
- The 1-EMI Rule: Try to pay one extra EMI every year. This can reduce a 20-year loan by nearly 3-4 years.
- Increase EMI with Salary: As your income grows, increase your EMI amount. A 5% annual increase in EMI can halve your loan tenure.
- Use Windfalls: Use bonuses, tax refunds, or maturity amounts from other investments to make part-payments.
Emergency Fund
Always maintain an emergency fund before making prepayments. Prepaid amounts cannot be easily withdrawn if you need cash urgently.
Floating vs Fixed
Floating rate loans are better for prepayment as they usually have no penalties. Fixed rate loans might have charges.