Finance · Free tool
Loan Prepayment Calculator
Even a small extra payment changes the math significantly because interest accrues on the outstanding balance every month. See exactly how many years (and rupees) an extra payment saves.
Loan terms
Prepayment plan
Earlier is better.
Lump-sum vs extra EMI — which works better?
A bonus prepayment in year 2 saves more interest than the same amount paid in year 8 — because more of the early EMI goes to interest. If you have a one-time windfall, deploy it early. If you have a steady surplus, an extra ₹5,000–10,000 monthly is the easier habit and matches a mid-cycle lumpsum in total impact.
Prepayment penalty — the rule
For floating-rate home loans for individuals, RBI prohibits prepayment penalty (Aug 2012 circular). Fixed-rate or business loans can have penalties — typically 2-4% of the prepaid principal. Always check your sanction letter.