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Loan Prepayment Calculator

Home loan feeling heavy? See exactly what a one-time prepayment does. Two options side-by-side: finish faster, or pay less monthly.

Your loan
₹40.00 L
One-time prepayment
₹5.00 L

A single lump payment towards principal

Ongoing extra EMI
₹5,000

How much MORE than the scheduled EMI you can pay each month

Best-case interest saved
₹10.36 L
via ₹5,00,000 one-time prepayment (reduce tenure)
Option A — One-time prepayment (reduce tenure)
EMI stays₹39,390
New tenure11.8 yrs
Time saved3.3 yrs (39 months)
Total interest paid₹20.54 L
Interest saved₹10.36 L
Option B — One-time prepayment (reduce EMI)
New EMI₹34,466
EMI drops by₹4,924
Tenure stays15 yrs
Interest saved₹3.86 L
Option C — Increase EMI monthly
Base EMI₹39,390
New EMI (base + extra)₹44,390
New tenure12.1 yrs
Time saved2.9 yrs (35 months)
Total interest paid₹24.36 L
Interest saved₹6.54 L
Baseline (no prepayment, no extra)
Current EMI₹39,390
Total interest over tenure₹30.90 L

Amortization schedule

Rule of thumb: If your loan rate exceeds your expected post-tax SIP return, prepay. Otherwise consider investing that money instead — the SIP calculator can show you the alternative outcome. Option C (bumping EMI) is often the easiest to implement: no lump sum needed, just a small step-up.
Partner · Home loan

See if refinancing beats prepaying at your current rate.

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Simple estimate for loan prepayment. Rates & taxes will vary — verify before acting.

Shows exactly how much interest a lump-sum prepayment saves and how many months it shortens your loan by — since banks apply prepayments to principal first, and every rupee off principal stops earning interest immediately.

How it's calculated

A prepayment reduces the outstanding principal on the date it's made; interest for every subsequent month is then calculated on that lower balance. Since the EMI itself typically stays fixed (unless you request re-amortization), the loan simply finishes earlier — the calculator recomputes the full remaining schedule with and without the prepayment to show the exact interest saved and months shaved off.

Worked example

On a ₹40L loan at 8.5% with 15 years remaining, a ₹5L lump-sum prepayment plus an extra ₹5,000/month typically saves several lakh in interest and shortens the tenure by multiple years — the exact figures depend on when in the tenure the prepayment happens, since earlier prepayments compound the savings for longer.

Frequently asked
Is it always better to prepay than invest the same amount?

Not automatically. Compare your loan's after-tax interest rate against your realistic after-tax investment return. A home loan at 8.5% with no interest deduction (new tax regime) is a guaranteed 8.5% 'return' from prepaying; an equity SIP at 12% pre-tax is roughly 10.4% after LTCG — a real but modest edge, not a guarantee.

Does prepaying always reduce my EMI?

Only if you ask the bank to re-amortize. By default, most banks keep your EMI the same and simply shorten the tenure — which saves more total interest than reducing the EMI would, since the loan closes sooner.

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