Last updated: February 28, 2026

Loan Prepayment Calculator
Save Lakhs in Interest

See the powerful impact of part payments on your home loan. Calculate how much you can save and become debt-free faster.

100% Free

No hidden charges

Instant Results

Real-time calculation

Data Safe

No data is stored

Loan Details

₹1,00,000₹5,00,00,000
%
6%20%
months
12 months360 months

20.0 years

Total Loan Tenure

Add Part Payments

Plan your prepayments and see massive savings instantly

Your Prepayments:

2,00,000

Month 12 (1.0 years)

2,00,000

Month 24 (2.0 years)

2,00,000

Month 36 (3.0 years)

Total Prepayments:6,00,000

Total Savings with Prepayments

₹13,76,044

Interest Saved

Time Saved

7 years 7 months

(91 months earlier)

New Tenure

149 months

(12.4 years)

Original Tenure

240 months

(20.0 years)

Interest Comparison

Without Prepayment

Total Interest

₹27,06,939

20.0 years

With Prepayments

Total Interest

₹13,30,895

12.4 years

You Save

₹13,76,044

in interest payments

91

months saved

Prepayment Tips

Prepay early: Maximum benefit in first 5 years

Use bonuses: Annual bonus toward prepayment

Check charges: Some banks have prepayment fees

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Loan part payment, in short

Use this loan part-payment calculator to estimate how prepayments reduce interest cost and repayment tenure. Test different part-payment amounts and timing to choose the strategy that minimizes total borrowing cost.

What is a part-payment calculator?

A part-payment calculator measures loan tenure reduction and interest savings after making prepayments. It helps borrowers decide when and how much to prepay by comparing scenarios for monthly EMI burden, outstanding principal, total debt cost, and cashflow flexibility across different prepayment schedules.

Master Loan Prepayment Strategy

Your complete guide to becoming debt-free faster while saving lakhs in interest

Why Prepay?

  • Massive Interest Savings

    Save 30-40% of total interest with regular prepayments

  • Become Debt-Free Faster

    Reduce your loan tenure by 5-10 years

  • Financial Peace

    Lower debt burden improves credit score and financial health

  • Wealth Building

    Money saved on interest can be invested elsewhere

When to Prepay?

The earlier you prepay, the better. Here's why:

  • Early prepayments reduce the principal significantly
  • Lower principal means less interest in subsequent EMIs
  • Maximum benefit in first 5-7 years of loan
  • After 50% tenure, prepayment benefit reduces

Prepayment Strategy

Annual Bonus

Allocate 50-70% of annual bonus toward prepayment

Tax Refunds

Use tax refunds for prepayment

Increment

Increase EMI by 10-15% annually

Windfalls

Sale proceeds, inheritance toward loan closure

Prepay vs Invest?

Should you prepay or invest? Consider:

High Returns Available

If investment returns > loan interest: Invest

Need Predictable Outcome

Prepay (locks in interest savings)

Balanced Approach

60% prepayment, 40% investment

Don't forget tax benefits under Section 80C and 24(b)

Prepayment Tips

Prepay early: Maximum benefit in first 5 years

Use bonuses: Annual bonus toward prepayment

Check charges: Some banks have prepayment fees

Last reviewed: 2026-02-28

Next steps and related workflows

Sources and references

Plan Debt + Investment Strategy

How to use the Part Payment Calculator

1

Enter base loan details

Set outstanding principal, rate, and remaining tenure.

2

Add one or more prepayments

Enter month and amount for each planned prepayment.

3

Calculate comparison

Compare repayment with and without prepayment strategy.

4

Optimize for EMI or tenure

Use savings output to choose a practical payoff strategy.

Part Payment Calculator FAQs

Part payment reduces outstanding principal. This can lower total interest and either shorten tenure or reduce EMI depending on lender policy.