Loan Prepayment Calculator
What a lump sum or a higher EMI actually saves — and how differently reducing the tenure and reducing the EMI work out.
Your numbers
Nothing you type here leaves your device as you work. Saving is the only thing that sends it anywhere, and only when you ask.
₹50 lakh
₹5 lakh
₹ MoneyLingo · moneylingo.in
Loan Prepayment Calculator
Worked out on 13/8/2026
| Loan amount | 5000000 |
|---|---|
| Interest rate | 9 |
| Tenure in months | 240 |
| Lump sum you would prepay | 500000 |
| In which month | 13 |
| Extra added to every EMI | 0 |
My scenarios (0/10)
Snapshots of your inputs, so you can flip between them — “20 years at 9%” against “15 years at 9.5%”. Stored in this browser only, no account needed.
And it finishes 4 years 2 months earlier
- Interest saved by lowering the EMI instead
- ₹5.42 lakh
- Difference between the two
- ₹12.1 lakh
- Interest without prepaying
- ₹58 lakh
- Interest after prepaying
- ₹40.4 lakh
- New tenure
- 15 years 10 months
What this means
- Keeping the EMI the same and shortening the loan saves ₹17,55,878 in interest and finishes 50 months earlier.
- Banks often propose reducing the EMI instead, because a lower monthly figure feels like the bigger win. It saves considerably less. Ask for tenure reduction explicitly — it is usually not the default.
- Floating-rate home loans to individuals cannot carry a prepayment penalty. Fixed-rate loans and many personal loans can — check the sanction letter before you prepay.
Questions people actually ask
- Should I reduce my EMI or my tenure when I prepay?
- They save very different amounts. Keeping the EMI and shortening the loan saves substantially more interest than lowering the EMI over the original tenure. Banks often default to the second. The calculator shows both figures so you can see the gap and choose.
Where these numbers come from
Every rate this tool uses, its source, and the date a human last checked it against that source.
- DICGC deposit insurance cover, per depositor per bank · checked 2026-04-05
Covers principal and interest together, aggregated across all branches of the same bank, in the same right and capacity.
- s.194A threshold for interest paid by a bank to a resident · checked 2026-04-05
- s.194A threshold for a resident senior citizen · checked 2026-04-05
- s.194A rate where PAN is furnished · checked 2026-04-05
20% where PAN is not furnished. TDS is not the final tax — the interest is still taxable at your slab rate.
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