How much do I save by prepaying my loan?
Paying a lump sum into a loan leaves you a choice most banks do not explain: keep the EMI and finish earlier, or keep the term and pay less each month. Shortening the tenure saves far more interest. Lowering the EMI helps cash flow now. This shows both, side by side.
How far into the loan you are when you prepay.
Interest saved, shorter tenure
₹11,73,423
Indicative only. Your lender’s figures may differ. Nothing you enter here is sent anywhere or stored.
The calculator finds what you still owe after the EMIs already paid, takes the lump sum off it, and then compares two choices.
Keep the same EMI and finish sooner, or keep the same end date and pay a smaller EMI. Keeping the EMI saves more interest, because the balance falls faster.
If you enter
You get
These are the calculator's starting values. Change them above to see your own.
Prepayment charges differ by lender. Check them before you borrow, not after.
HDFC Bank
Protium Finance Limited
Bajaj Finserv
Reducing the tenure saves substantially more interest, because interest is charged on the outstanding balance for as long as it is outstanding. Reducing the EMI is the right choice only if the monthly amount is genuinely straining you. Banks often default to reducing the EMI without asking.
Compare the loan rate against what the same money would earn elsewhere, after tax. Prepaying a home loan at 8.5% is a guaranteed 8.5% return, which is hard to beat safely. Prepaying is almost always right for a personal loan at 14% and is a closer call against equity for a cheap home loan.
On floating-rate home loans to individuals, the RBI does not allow banks to charge them. Fixed-rate loans and most personal loans can carry a fee of a few percent of the amount prepaid. Check before you transfer.
Early EMIs are almost entirely interest. Removing principal in year three cancels interest on that amount for seventeen remaining years. The same prepayment in year fifteen cancels far less, which is why the timing field here changes the answer so sharply.
Short reads that explain how it works before you decide.
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