Loan Comparison & Prepayment Calculator
Simulate prepayments and compare how extra payments reduce your loan tenure and interest
Loan & Prepayment Simulation
₹
₹ 1,00,000₹ 1,00,00,000
%
Years
₹
₹ 0₹ 50,000
Calculation Result
Standard EMI
₹22,093
Effective payment with extra: ₹25,093Loading visualization...
Interest Saved
₹8,24,886
Tenure Cut by
5y 1m
New Total Interest
₹19,77,379
How this calculator works
1
Enter your total loan amount, interest rate, and standard tenure.
2
Add an optional monthly extra payment or lump-sum payment.
3
View how many months and total interest you save.
Formula & Mathematics
Loan Balance Recalculation Formula
Balance_{t} = Balance_{t-1} × (1 + r) - (EMI + Prepayment)
Each month extra principal prepayment directly reduces the outstanding principal balance, accelerating loan payoff.
Worked Example
Saving ₹4.5 Lakhs by Paying ₹2,000 Extra Monthly
A 20-year loan of ₹20,00,000 at 9% with an extra monthly payment of ₹2,000.
• Base monthly EMI is ₹17,995
• Paying ₹19,995 each month accelerates principal payoff
• Loan finishes in 15 years instead of 20 years
You save approximately 60 months of payments and ₹4.5 Lakhs in interest.
Frequently Asked Questions
Under RBI guidelines in India, floating-rate home loans to individual borrowers have zero prepayment penalties.
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