LP
Loan Prepayment Calculator
Instantly calculate how much interest you save and how many EMIs are cut when you prepay a lump sum on your loan.
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Loan Details
Result (keeping EMI the same)
—
Interest saved
Current EMI—
Old remaining tenure—
New tenure (after prepayment)—
EMIs reduced by—
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How to use — Loan Prepayment Calculator
- Enter the loan's current outstanding amount (visible in your bank app).
- Enter the interest rate and remaining tenure.
- Enter the lump sum you want to prepay.
- Click Calculate — see how much interest you'll save and how many EMIs are cut.
FAQ
Does prepayment reduce tenure or EMI?
You can choose either. This calculator shows tenure-reduction (EMI stays the same) — this gives the biggest interest savings. Reducing the EMI helps cash flow but saves less.
Is there a penalty for home loan prepayment?
Per RBI rules, floating-rate home loans have no prepayment penalty. Fixed-rate loans may have a 2–4% penalty — confirm with your bank.
Is it better to prepay or invest?
Rule of thumb: if the expected investment return (post-tax) exceeds the loan rate, invest; otherwise prepay. Prepaying an 8.5% loan = a guaranteed 8.5% tax-free return.
When is prepayment most beneficial?
In the early years of the loan — that's when a bigger part of the EMI is interest, so reducing the principal has the biggest impact.
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