EMI Prepayment Calculator
Model part‑payments on any loan and discover how much interest you save and how much sooner you become debt‑free.
Loan Type
Country currency & penalty norms
Your Loan
₹
% p.a.
Years
Prepayment Strategy
Prepayment Plan combine any of these
₹
Month #
₹
Month #
₹
1–12
% / year
Increases the recurring top-up each year (0 = off). Charges
% of prepaid
India floating-rate loans to individuals: 0 (RBI). Edit for fixed-rate / other countries.₹
Smart Insights
India Home-Loan Tax Impact (Old Regime, 24(b))
Prepaying lowers the interest you pay, which reduces your Section 24(b) interest deduction (capped ₹2 L for a self-occupied home). If you claim 24(b) in the Old Regime, part of the interest saving is offset by a smaller tax benefit. Estimate only — the net interest saving usually still favours prepayment. Confirm with a CA.
Outstanding Balance: With vs Without Prepayment
Yearly Interest: Original vs After Prepayment
Where Your Money Goes (After Prepayment)
Yearly Comparison Schedule
How Prepayment Works
Every EMI pays interest first, then principal. A part-payment goes straight to principal, so future interest is calculated on a smaller balance — saving money and/or time.
- Reduce TenureKeep the EMI the same; the loan ends earlier. This saves the maximum interest.
- Reduce EMIKeep the tenure the same; the EMI drops after each part-payment. Eases monthly cash flow but saves less interest.
- Lump SumA one-time part-payment (from a bonus, sale or savings) at a chosen month.
- Recurring Top-upA fixed extra amount paid monthly, quarterly, half-yearly or yearly.
- Step-upIncrease the recurring top-up by a percentage every year as your income grows.
- ChargesSome loans levy a prepayment/foreclosure charge. India: 0 on floating-rate loans to individuals (RBI).
Prepayment Charges by Country
🇮🇳
IndiaRBI: zero prepayment penalty on floating-rate loans to individuals. Fixed-rate loans may charge ~2–4% foreclosure.
🇺🇸
USAMany loans have no prepayment penalty; some mortgages carry one in the first 3–5 years — check your note.
🇬🇧
UKAn Early Repayment Charge (ERC) often applies during a fixed/deal period, typically 1–5%.
🇦🇪
UAEBanks may charge up to ~1% of the prepaid amount (capped) per Central Bank norms.
🇦🇺
AustraliaVariable loans usually have no fee; fixed loans may incur break costs.
🇨🇦
CanadaVariable: ~3 months' interest; fixed: Interest Rate Differential (IRD) can be significant.
Expert Prepayment Tips
- Prepay earlyInterest is front-loaded; a part-payment in the first few years saves far more than the same amount later.
- One extra EMI a yearPaying 13 EMIs a year instead of 12 can shave years off a long home loan.
- Choose reduce-tenureIf you can afford the EMI, reducing tenure beats reducing EMI on total interest saved.
- Check charges firstIf the foreclosure charge exceeds the interest saved, prepayment may not be worth it.
- Weigh the tax angleFor an Indian home loan in the Old Regime, compare interest saved against the 24(b) benefit you'd lose.
- Keep an emergency fundDon't prepay so aggressively that you have no liquidity for emergencies.
Frequently Asked Questions
Want a personalised prepayment plan?
Our experts can structure your part-payments, compare balance-transfer options and factor in tax to maximise your savings.