Loan Prepayment Calculator — Tenure Reduction & Interest Savings
Calculate how part-prepayments reduce your remaining loan tenure and save lakhs in total interest outgo.
Enter Your Details
Interactive InputsNeed Personalized Assistance?
Connect with certified specialists for custom quotes.
Before vs After Prepayment Comparison
| Metric | Original Schedule | With Prepayment | Net Financial Benefit |
|---|---|---|---|
| Remaining Tenure | 15.0 Years | 11.3 Years | -3.7 Years Early! |
| Total Interest Outgo | ₹27,03,843 | ₹16,80,589 | Saves ₹10,23,254 |
| Total Repayment (P+I) | ₹62,03,843 | ₹51,80,589 | ₹10,23,254 in pocket |
Example: Prepaying ₹5 Lakh on a ₹35 Lakh Home Loan
A borrower with ₹35,00,000 outstanding principal at 8.5% with 15 years (180 months) remaining prepays ₹5,00,000 today.
- Outstanding Principal:₹35,00,000
- Prepayment Amount:₹5,00,000
- Interest Rate & Remaining Tenure:8.50% p.a., 15 Years
- Total Interest Saved:₹10,23,500+
- Tenure Reduced By:48 Months (4.0 Years)
- Revised Remaining Tenure:11.0 Years
Key Takeaway: A ₹5 Lakh prepayment saves over ₹10 Lakh in future interest — effectively doubling the value of your cash prepayment through compounding interest elimination.
How This Calculation Works (Mathematical Formula)
Amortizes remaining balance over effective payments to quantify exact tenure reduction and interest saved.
Frequently Asked Questions
Under RBI regulations, banks and NBFCs cannot charge any prepayment or foreclosure penalties on floating-rate individual home loans.
Related Calculators
Helpful Guides & Explanations
Disclosure: Ankiva One provides free financial calculators and guides. When you apply for products through partner links on our website, we may receive compensation at no extra cost to you. This does not influence our objective calculations.