Home loans
See what a bonus paid into a home loan saves over 20 years.
Loan Prepayment Calculator
Enter your loan and a part payment. You will see the interest saved and how much sooner the loan ends.
Your files stay with you. Your files never leave your browser. This tool runs on your device: nothing is uploaded to our servers, so there is nothing for us to store or see.
How to use it
- Enter the loan amount, rate and original tenure.
- Enter a one-time part payment and when you will make it, and any extra monthly amount.
- Choose between a shorter tenure or a lower EMI and read the savings.
Where it helps
Car and personal loans
Decide whether to close a loan early or keep the cash.
Business loans
Check the savings before paying a lender's prepayment fee.
Good to know
Stays in your browser
Numbers you type are worked out on your device and never sent to our servers.
Check fees
Fixed-rate and business loans may charge for prepayment.
Keep an emergency fund
Don't prepay with money you may need soon.
Questions people ask
How much interest does a loan prepayment save?
Enter the loan amount, the interest rate and the original tenure. Add a one-time part payment and the month you'll make it, an extra amount every month, or both. Choose to finish sooner with the same EMI or keep the end date with a lower EMI. The tool shows the interest saved, the new end date and a year-by-year balance.
- 2 choices Shorter or lower EMI. Compare both.
- Lump Or monthly extra. Or both.
- Year table Balance left. And interest paid.
- 0 Data sent. In your browser.
Which saves more: a shorter tenure or a lower EMI?
Keeping the same EMI and finishing sooner saves more interest, because you keep paying the same amount against a smaller balance. A lower EMI eases your monthly budget and still saves interest, but less. The tool shows both results so you can choose the one that suits your cash flow.
Do banks charge for part payment?
RBI rules bar prepayment charges on floating-rate loans taken by individuals for non-business purposes. Fixed-rate loans, business loans and some NBFC loans may charge a fee, often a percentage of the amount prepaid. Check your sanction letter and subtract any fee from the interest saved.
Is this accurate for my own loan?
It follows the standard reducing-balance method with monthly EMIs, which most Indian lenders use. If your bank changed the rate, charged a processing fee or uses a different day count, the actual figures will differ a little. Use the bank's revised schedule for the exact numbers.
When is the best time to prepay?
Early in the loan. In the first years most of each EMI goes to interest, so a part payment then cuts much more interest than the same amount near the end. Enter the part payment month as, say, month 12 and then month 120 to see how big the difference is.
Should I prepay my home loan or invest the money?
Compare your loan rate after tax benefits with what you could safely earn. Prepaying a 9% loan is like earning a guaranteed 9%. If you'd otherwise leave the money in a savings account, prepaying usually wins. Keep an emergency fund first, and ask an adviser for large sums.
What does an extra amount every month do?
Paying a little more each month, such as ₹2,000 on top of the EMI, reduces the balance steadily and can cut years off a long loan. Enter it in 'Extra paid every month'. Many people find this easier than saving up for a large one-time part payment.
How do I tell my bank about a prepayment?
Most banks let you make a part payment online or at a branch, and ask whether to reduce the EMI or the tenure. If you don't choose, many banks reduce the tenure by default. Ask for a revised repayment schedule afterwards and check it against this calculator.
Does prepaying affect my income tax benefits?
Under the old tax regime, home loan interest and principal can qualify for deductions within set limits. Prepaying lowers future interest, so the interest deduction shrinks too. That's usually still worth it, because you save more interest than the tax you'd save. Check your own case with a CA.
What does the year-by-year table show?
For each year it shows the balance still owed and the total interest paid so far with your prepayment. You can see how quickly the balance falls after the part payment. It's also useful for planning a second prepayment in a later year. Compare it with your bank's statement each year.
Can I make more than one part payment?
This tool takes one lump sum plus a regular extra amount. To model several lump sums, run it once with the first payment, note the balance from the table, then start a new calculation from that balance with the remaining tenure. The extra monthly option often covers regular bonuses well.
Is it better to close a personal loan early?
Personal loans usually carry high interest rates, so closing one early often saves a lot. But many lenders charge a foreclosure fee on personal loans, which can be a few percent of the balance. Subtract that from the interest saved shown here before deciding. Ask the lender for a foreclosure letter first.
What rate should I enter for a floating loan?
Enter your current rate. If you expect it to change, try a higher and a lower rate to see the range. Floating rates move with the bank's benchmark, and banks often extend the tenure rather than raise the EMI, which this tool can't predict ahead of time.
Is anything I enter stored?
No. Every calculation happens in your browser and your loan details never reach our servers. There's no sign-up and nothing is saved after you close the page, so you can plan prepayments privately without linking a bank account or sharing any statements. Close the tab and nothing remains.
Does it work on a phone?
Yes. The fields open the number keypad, the choice between a shorter tenure and a lower EMI is a tap, and the year table scrolls on a small screen. It works in any mobile browser, so you can check the savings before you call your bank.
Is the loan prepayment calculator free?
Yes, it's free with no sign-up and no limit. It's one of the free finance calculators from Marketiism, together with the EMI, FD and compound interest tools. Marketiism makes business software and doesn't offer loans or financial products of any kind. Use it as often as you like before talking to your bank.
Want this inside your own account?
Marketiism keeps your invoice numbers, GST reports, UPI payment links and WhatsApp reminders in one place. Leave your details and we'll call to set it up for your business, or start the trial yourself.
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