Adding this amount to your monthly EMI.
Total Interest You Save
Loan Prepayment (or Part-Payment) is one of the smartest ways to become debt-free faster. By paying a little extra over your regular EMI every month, you can drastically reduce your principal amount. This directly impacts the interest calculation, saving you a significant amount of money in the long run and reducing your loan tenure. Our Loan Prepayment Calculator helps you visualize this impact. Adjust the "Extra Payment" slider to see how small contributions today can save you lakhs in future interest payments.
Interest is calculated on the outstanding principal. Reducing principal reduces interest instantly.
Shorten your loan tenure by years just by paying a small extra amount monthly.
Closing loans early demonstrates strong financial discipline, boosting your CIBIL score.
Lower your liabilities sooner, freeing up your monthly income for investments or lifestyle.
Use the slider to simulate scenarios like "What if I pay ₹5k extra?" vs "₹10k extra?".
For floating-rate Home Loans given to individuals, the RBI has mandated zero prepayment penalty. However, for fixed-rate home loans, personal loans, and car loans, banks may charge a penalty of 2% to 5% on the prepaid amount.
To maximize savings, always choose to reduce the tenure. Reducing the EMI amount will lower your monthly burden but won't save you much interest cost in the long run compared to reducing the tenure.
The earlier, the better. Interest payouts are highest in the initial years of the loan. Prepaying early significantly cuts down the principal and the interest accrued on it. Prepaying towards the end of the tenure has minimal impact.
Yes, most modern banks (like HDFC, SBI, ICICI) allow you to make part-payments directly via their NetBanking portals. For some PSUs, you might still need to visit the branch with a cheque.
