Loan Prepayment Calculator

Loan prepayment can significantly reduce your interest burden and help you become debt-free faster. Our calculator helps you understand the benefits of making partial prepayments and choose the best strategy for your financial situation.

You can choose between two prepayment options: reducing the loan tenure while keeping EMI same, or reducing the EMI amount while keeping the tenure same.

Prepayment Options:

• Reduce Tenure: Keep EMI same, finish loan earlier
• Reduce EMI: Keep tenure same, lower monthly payments

Benefits of Loan Prepayment:

• Interest Savings: Reduce total interest paid over loan tenure
• Debt Freedom: Become debt-free faster
• Credit Score: Improve credit score with timely prepayments
• Financial Freedom: Free up monthly cash flow

When to Prepay:

• Early Years: Maximum benefit in initial years of loan
• Surplus Funds: When you have extra money available
• Bonus/Windfall: Use annual bonus or unexpected income
• Low Investment Returns: When loan rate > investment returns

Prepayment Considerations:

• Prepayment Charges: Check if lender charges penalty
• Tax Benefits: Consider loss of tax deductions
• Emergency Fund: Maintain adequate emergency fund
• Investment Opportunities: Compare with other investment options

Features:

• Calculate interest savings from prepayment
• Compare tenure reduction vs EMI reduction
• Visual before/after comparison
• ROI analysis on prepayment amount
• Optimal prepayment timing guidance