Prepayment calculator.
Put a lump sum into your loan and see what it saves: fewer years, or a smaller EMI.
Two ways to use a prepayment
When you prepay, most lenders let you choose. Keep the EMI the same and finish years earlier, or keep the end date and pay a smaller EMI. Cutting the tenure usually saves far more interest. Cutting the EMI gives you breathing room every month.
What this calculator shows
- Interest saved and months saved if you keep your EMI.
- Your new EMI if you keep your tenure.
- Under More options: prepay a few months from now, or add a yearly extra payment.
Before you prepay
- Under RBI rules, floating-rate loans taken by individuals for personal use, sanctioned or renewed from 1 January 2026, carry no prepayment charge. Check your loan papers for older or fixed-rate loans.
- Keep an emergency fund. Money paid into a loan is hard to get back.
Questions.
Is it better to reduce EMI or tenure?
Reducing tenure saves more interest because the loan ends sooner. Reducing EMI lowers your monthly outgo. If your budget is comfortable, tenure usually wins.
When is prepaying most useful?
Early in the loan, when most of each EMI is interest. The same amount prepaid in year 2 saves much more than in year 15.
Will my bank charge me for prepaying?
It depends on the loan type and when it was sanctioned. RBI rules from 1 January 2026 remove the charge for floating-rate loans to individuals for personal use. Read your loan agreement for anything else.
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