Loan Prepayment Calculator
Calculate savings from loan prepayment and choose the optimal strategy between reducing tenure or EMI amount.
Loan Prepayment Calculator
Calculate savings from prepaying your loan
Prepayment Analysis
See how prepayment affects your loan
Current Loan Status
Prepayment Analysis
Visual comparison of loan scenarios and savings
Total Payment Comparison
Time Comparison
Smart Prepayment Strategies
Expert strategies to maximize your loan prepayment benefits
Prepay Early
Maximum savings occur when you prepay in the initial years as the interest component is highest.
💡 First 5 years give maximum savings
Annual Prepayments
Regular annual prepayments from bonus or increment can significantly reduce loan tenure.
📋 Use annual bonuses for consistent prepayment
Windfall Prepayments
Use unexpected income like insurance maturity, FD maturity, or stock gains for large prepayments.
🎯 Invest windfalls in debt reduction first
Rate Environment
In rising interest rate scenarios, prepayment becomes more attractive than investments.
📈 High loan rates = prioritize prepayment
Tax Considerations
Consider loss of tax benefits on home loan interest before aggressive prepayment.
🏠 Factor in 80C + 24(b) deductions for home loans
Emergency Fund First
Ensure adequate emergency fund (6-12 months expenses) before aggressive loan prepayment.
⚡ Financial safety before debt reduction
Prepayment vs Investment Dilemma
When to prepay your loan vs invest in other instruments
Choose Prepayment When
High-cost debt should be prioritized for repayment
Guaranteed savings vs uncertain market returns
Emotional benefits of being debt-free earlier
Reduce debt burden before income drops
Choose Investment When
Better to invest in higher-yielding instruments
Long investment horizon for wealth creation
Effective interest rate reduces due to tax savings
Investment provides better liquidity than prepayment
Effective Loan Rate = Loan Interest Rate × (1 - Tax Rate)
If: Expected Investment Returns > Effective Loan Rate → Invest
If: Expected Investment Returns < Effective Loan Rate → Prepay
Loan Prepayment Calculator FAQ
Everything you need to know about personal loans
Need More Help?
Financial planning requires careful consideration of various factors. Consider consulting with a financial advisor for personalized advice based on your specific situation.
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