Prepayment / Foreclosure Calculator
See how much interest you save and how your loan tenure reduces when you make a lump sum prepayment on your loan.
Loan Details
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Original loan principal amount%
Annual interest ratemonths
= 20 years Prepayment Details
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Lump sum amount you plan to prepaymonths
Which month you will make the prepayment📊
Enter loan and prepayment details to see your savings
About Prepayment / Foreclosure Calculator
Prepaying your loan — even partially — can save you lakhs in interest and significantly reduce your loan tenure. This calculator helps you visualise the exact benefit of any lump sum prepayment.
How Prepayment Works
When you make a partial prepayment, the extra amount goes directly toward reducing your outstanding principal. This means less interest accrues in future months, either reducing your EMI or shortening your tenure (most lenders default to shortening tenure).
Types of Prepayment
- Partial Prepayment: Pay a lump sum to reduce outstanding principal. EMI stays the same but tenure reduces.
- Full Foreclosure: Pay off the entire outstanding loan before tenure ends. Some lenders charge a foreclosure fee.
- EMI Increase: Pay a higher EMI each month. Effectively same as monthly micro-prepayments.
Prepayment Charges
- Home loans on floating rate: No prepayment charges (RBI rule).
- Car loans: Usually 3–5% of prepaid amount.
- Personal loans: Usually 2–5% of outstanding amount.
- Fixed rate loans: Lenders may charge 1–2% prepayment penalty.
Best Time to Prepay
- Early in the loan tenure — more of each EMI goes to interest, so prepayment saves more.
- When you receive a bonus, inheritance, or any lump sum income.
- Before the loan crosses 50% of its tenure for maximum benefit.