Loan Prepayment Calculator
See how making lump-sum prepayments can slash your tenure and save lakh in interest.
Prepayment Savings Summary
Interest Saved₹1,86,562
Tenure Saved14 Months
Original Interest Payable:₹15,45,062
New Interest Payable:₹13,58,501
New Loan Term:13 Yrs 10 Mos
How This is Calculated (Formula Transparency)
Applies prepayments directly to reduce the principal balance, recalculating the amortization schedule to show how much earlier the loan finishes while keeping EMI constant.
Concept: Outstanding principal at month 24 is ₹47,78,054. Deduct ₹2,00,000 prepayment = ₹45,78,054. New remaining months drops from 216 to 191.
Worked Example Case Study
Scenario: ₹50,00,000 home loan at 8.5% for 20 years, with a single prepay of ₹2,00,000 at the end of the 2nd year (month 24).
Detailed Calculation: Outstanding principal at month 24 is ₹47,78,054. Deduct ₹2,00,000 prepayment = ₹45,78,054. New remaining months drops from 216 to 191.
Result Outcome: Interest Saved: ₹5,38,400. Tenure Reduced: 25 months (2.1 Years).
Assumptions & Rules
- Prepayment is applied directly to the outstanding principal.
- EMI remains constant while tenure reduces.
- No prepayment penalty fees are charged.
- Calculations are compliant with laws and rates as of FY 2025-26 (AY 2026-27).
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