Loan Prepayment / Foreclosure Calculator
Find out how much a one-time prepayment saves you in interest — and why cutting the tenure usually beats cutting the EMI.
15 yr
Interest saved
₹9,43,195
Loan closes 4 yr 10 mo sooner.
Repayment schedule after prepayment
Early years are mostly interest; later years mostly principal. Total interest ₹9,88,133 on ₹20,00,000 borrowed.
| Year | Principal paid | Interest paid | Total payment | Balance left |
|---|---|---|---|---|
| 1 | ₹1,30,425 | ₹1,64,997 | ₹2,95,422 | ₹18,69,575 |
| 2 | ₹1,41,954 | ₹1,53,468 | ₹2,95,422 | ₹17,27,621 |
| 3 | ₹1,54,501 | ₹1,40,921 | ₹2,95,422 | ₹15,73,120 |
| 4 | ₹1,68,158 | ₹1,27,264 | ₹2,95,422 | ₹14,04,962 |
| 5 | ₹1,83,021 | ₹1,12,401 | ₹2,95,422 | ₹12,21,941 |
| 6 | ₹1,99,199 | ₹96,223 | ₹2,95,422 | ₹10,22,742 |
| 7 | ₹2,16,806 | ₹78,616 | ₹2,95,422 | ₹8,05,936 |
| 8 | ₹2,35,970 | ₹59,452 | ₹2,95,422 | ₹5,69,966 |
| 9 | ₹2,56,827 | ₹38,595 | ₹2,95,422 | ₹3,13,139 |
| 10 | ₹2,79,529 | ₹15,893 | ₹2,95,422 | ₹33,611 |
| 11 | ₹33,611 | ₹303 | ₹33,914 | ₹0 |
How it's calculated
Starting from your outstanding loan, we:
- derive your current EMI from the outstanding amount, rate and remaining tenure;
- compute the baseline interest you'd pay with no prepayment (EMI × months − principal);
- Reduce tenure: keep the same EMI and amortize the lower balance month-by-month to find the new, shorter tenure;
- Reduce EMI: keep the same tenure and compute a new, lower EMI.
Interest saved = baseline interest − new interest. Reducing the tenure almost always saves more interest than reducing the EMI, because you clear the principal faster.
Home loan rates — top banks
Rates updated as of 11 Jul 2026
| Bank | Rate range (p.a.) | Notes |
|---|---|---|
| LIC Housing Finance | 7.20% | Starting rate for eligible profiles |
| State Bank of India | 7.30% | Starting rate for eligible profiles |
Prepayment tips
- Prepay as early in the tenure as you can — that's when interest makes up most of each EMI.
- Choose "reduce tenure" over "reduce EMI" to maximise interest saved.
- Confirm foreclosure/prepayment charges with your lender before making a large payment.
Frequently asked questions
Does prepaying a loan really save money?
Yes. A prepayment reduces the outstanding principal, so less interest accrues over the remaining loan. The earlier in the tenure you prepay, the more interest you save, because more of each early EMI is interest.
Should I reduce the tenure or the EMI?
Reducing the tenure while keeping the same EMI almost always saves more interest, because you clear the principal faster. Reducing the EMI eases monthly cash flow but saves less overall. The calculator shows both so you can compare.
Are there charges for prepaying a loan?
Floating-rate home loans to individuals generally cannot be charged a prepayment penalty, but fixed-rate loans and some other loan types may attract charges. Check your loan agreement and confirm any foreclosure charges with your lender.
What is loan foreclosure?
Foreclosure means repaying the entire outstanding balance in one go and closing the loan early. If your prepayment equals or exceeds the outstanding principal, this calculator treats the loan as fully closed.
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