Loan Prepayment Calculator
The Loan Prepayment Calculator helps you calculate the interest savings and tenure reduction from making a lump-sum prepayment on your loan.
Calculation Formula
- P = Principal amount
- r = Annual interest rate
- n = Number of years
How to Use This Calculator
Enter the outstanding loan amount, interest rate, and time period. The result updates automatically. Adjust the sliders to see how different values affect your returns.
This calculator is for informational purposes only. EMI calculations are approximate and actual EMI may differ based on bank-specific processing fees, insurance, and other charges. Interest rates vary across lenders and are subject to change. Prepayment penalties may apply as per your loan agreement. Consult your bank or financial advisor for exact loan terms.
Frequently Asked Questions
Find answers to common questions about loan prepayment. Click on any question to expand the answer.
This calculator shows you the financial benefit of paying more than your regular EMI. It calculates the total interest you will save and how much your loan tenure will be reduced, helping you make informed decisions to become debt-free faster.
An amortization schedule is a table that details each periodic payment on a loan. It shows how much of each payment goes towards interest and how much goes towards paying down the principal balance.
Yes, our tool allows you to export the detailed month-wise amortization schedule as a PDF or Excel (CSV) file for your records or for sharing with your financial advisor.
Prepayment involves making a partial lump-sum payment towards your loan, which reduces the principal. Pre-closure (or foreclosure) is when you pay off the entire outstanding loan balance in one go before the tenure ends.
As per RBI guidelines, there are no prepayment penalties on floating-rate home loans. However, fixed-rate loans and other loan types like personal or car loans may attract a prepayment penalty, which varies by lender.
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