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EMI Prepayment Calculator

Calculate interest saved with loan prepayment

Loan Details

Savings Summary

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Total Interest Saved
Monthly EMI---
Without Prepayment
Total Interest---
Tenure---
With Prepayment
Total Interest---
New Tenure---
Months Reduced---

How Prepayment Works

When you make extra payments on a loan, the additional amount goes directly toward reducing the principal. Since interest is calculated on the outstanding principal, a lower principal means less interest accrues each month, creating a compounding savings effect.

Frequently Asked Questions

How does loan prepayment save money?
Prepayment reduces the principal balance, which reduces total interest charged. Even small extra monthly payments can save lakhs over the loan tenure.
Is there a penalty for prepayment?
For floating rate home loans in India, banks cannot charge prepayment penalty (as per RBI). Fixed rate loans may have 2-3% penalty.
Should I prepay or invest the extra money?
If your loan rate is higher than investment return (after tax), prepay. If investment returns are higher, invest. Home loans also have tax benefits to consider.