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Home›Loan Prepayment Calculator

Loan Prepayment Calculator

Should you prepay your home loan or car loan? See exactly how much interest you save and how many years you cut. Compare EMI reduction vs tenure reduction.


Interest Saved

₹5.62 L

EMI₹26,035/mo

Without Prepay Interest₹32,48,327
With Prepay Interest₹26,85,839
Tenure Reduced By2yr 5mo

📈 Loan Balance Over Time

💡 Reality Check

A one-time prepayment of ₹2.00 L in year 3 saves you ₹5.62 L in interest and finishes your loan 2 years 5 months earlier. That's a 281% return on your prepayment — better than most FDs.

💡 Related Tools

EMIEMI CalculatorLoanHome Loan CalculatorCompareSIP — Invest Instead?ReturnsCAGR Calculator

Frequently Asked Questions

Is it worth prepaying my home loan?▼
Usually yes — prepaying even ₹1-2 lakh saves several lakhs in interest over the loan term. The earlier you prepay, the more you save due to compounding.
Reduce EMI or reduce tenure?▼
Reducing tenure saves more interest overall. Reducing EMI gives immediate cash flow relief. Choose based on your financial situation.
Is there a penalty for prepayment?▼
RBI prohibits prepayment penalties on floating rate home loans. Fixed rate loans may have 2-3% penalty. Car loans usually have no penalty after 1 year.
How much should I prepay?▼
Prepay only after building an emergency fund (6 months expenses). Don't break tax-saving investments (80C) for prepayment. Even small prepayments (1-2 EMIs/year) help.
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