Loan Prepayment Calculator
See how much money and time you save when you pay a lump sum against your loan while keeping the same monthly payment.
Why paying extra on your loan helps
When you pay a lump sum toward the principal and keep your monthly payment the same, more of each future payment goes toward the loan and less toward interest. The loan ends sooner and you pay less interest overall.
Early prepayments save the most because that's when most of your payment is interest anyway. This calculator assumes your monthly payment stays the same and only the loan period shrinks. To see the original loan details, use our EMI calculator.
Common questions
Should I reduce my payment or shorten the loan?
Shortening the loan usually saves way more interest than lowering the payment, since you finish the debt sooner. This calculator keeps your payment the same and shortens how long you pay.
When does prepayment help most?
Right at the start. Early on, most of your payment goes toward interest. When you reduce the principal then, you prevent years of future interest. The benefit gets smaller as the loan ages and you're paying more principal anyway.
Will my bank charge me for prepayment?
Floating-rate home loans for regular borrowers usually don't have a prepayment fee. But fixed-rate loans or other types might. Check your loan agreement before paying a large sum early.