Loan prepayment calculator: interest saved by paying early

Paying part of a loan ahead of schedule reduces the balance that interest is charged on. Enter your loan details and the prepayment amount, and this calculator shows how much interest you save and how much sooner you finish, depending on whether you keep the EMI the same or lower it.

Keeping the EMI unchanged and shortening the tenure generally saves more total interest, because the balance falls faster and there are fewer months of compounding. RBI rules bar prepayment charges on most floating-rate loans to individuals, but fixed-rate loans can carry them, so check your loan agreement before paying a large amount.

Frequently asked questions

Should I prepay my loan or invest the money?

It depends on your loan's rate versus what you could safely earn elsewhere, and on your emergency cushion. The guide below walks through the trade-off.

Is it better to reduce the tenure or the EMI?

Reducing the tenure saves more interest in total. Reducing the EMI eases monthly cash flow but keeps you in debt longer.

Are there charges for prepaying?

Often not on floating-rate loans to individuals, but fixed-rate loans and some product types may charge a fee. Read the foreclosure clause.

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