Loan Prepayment Benefit Calculator
See exactly how much interest you save and how many months you cut off your loan with a lump sum prepayment today.
Enter Your Numbers
How this calculator works
A prepayment directly reduces your outstanding principal. Since interest is charged on the principal, even a modest prepayment early in the loan tenure saves a disproportionately large amount in interest. This is most powerful in the first 1/3rd of your loan tenure.
Interest saved = Original total interest − Revised total interest after prepayment
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
Early > late
A ₹2L prepayment in year 2 of a 20-year loan saves far more than the same prepayment in year 15.
Reduce tenure > reduce EMI
When prepaying, opt to reduce tenure (not EMI) — this saves more total interest.
Check prepayment charges
RBI has banned prepayment penalties on floating rate home loans. Fixed rate loans may still charge 1–2%.
Frequently Asked Questions
A ₹2L prepayment in year 2 of a 20-year loan saves far more than the same prepayment in year 15.
When prepaying, opt to reduce tenure (not EMI) — this saves more total interest.
RBI has banned prepayment penalties on floating rate home loans. Fixed rate loans may still charge 1–2%.