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Loan Prepayment Calculator
See how much interest you save by prepaying your loan.
Enter values to see your result
Frequently asked questions
Is it better to prepay early or late?
Early prepayments save more interest because outstanding principal is higher and the interest portion of EMI is largest. A prepayment in year 2 typically saves 5–10× more interest than the same amount in year 15.
Do banks charge foreclosure penalties?
For floating-rate home loans to individuals, RBI prohibits prepayment penalty. Fixed-rate loans and business loans may have 2–5% charges.
Should I reduce EMI or tenure?
Reducing tenure saves far more interest. Reducing EMI gives monthly cash flow relief but only saves a small amount of interest.
Is prepayment better than investing?
Compare your loan's effective rate vs. post-tax return from investment. If loan rate is 9% (non-deductible) and SIP returns are 12%, investing may be slightly better — but prepaying is guaranteed.