Loan prepayment calculator
Enter your loan, how many EMIs you've paid and the amount you want to prepay. See the interest you save.
- Shorter loan or lower EMI
- Any loan
- Free, no sign-up
Check the tax side first
Home loan interest can cut your tax. Prepaying lowers the interest, and sometimes the deduction with it.
Questions people often ask
Should I prepay a home loan if I claim section 24?
If your interest is well above ₹2 lakh a year, prepaying often costs you little in tax. Below that, the tax saved on interest shrinks.
Can a prepayment count for 80C?
Yes, principal repaid, including prepayments, counts towards the ₹1.5 lakh 80C limit in the old regime.
How prepaying saves interest
Less balance, less interest.
- The lump sum cuts what you owe.
- Keep the EMI and the loan ends sooner, or
- keep the end date and the EMI falls.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
Common questions
Is it better to reduce the EMI or the tenure?
Reducing the tenure (keeping the EMI) saves more interest. Reducing the EMI eases your monthly budget.
How much does a ₹5 lakh prepayment save?
On a ₹50 lakh, 20-year loan at 8.5%, prepaying ₹5 lakh after 3 years saves about ₹13.2 lakh of interest and ends the loan about 3 years 5 months sooner.
Are there charges for prepaying?
Not on floating-rate loans taken by individuals, under RBI rules. Fixed-rate loans may carry a charge.
When is the best time to prepay?
Early in the loan, when most of each EMI is interest. The same amount saves less interest later on.
Should I prepay or invest?
Prepaying earns a guaranteed return equal to your loan rate. Investing could earn more, or less. Our prepay-or-invest calculator compares them.
Does prepaying affect my tax?
For a home loan, yes: less interest means a smaller section 24 deduction. Principal prepaid counts for 80C in the old regime.
