Loan Prepayment / Foreclosure Calculator
Updated July 2026
See exactly how much interest you save with a lump-sum prepayment — and whether it's better to reduce your tenure or your EMI.
Loan Prepayment
Frequently Asked Questions
Should I reduce my tenure or my EMI after prepayment?
Reducing tenure (keeping EMI the same) saves more total interest, since you clear the loan faster. Reducing EMI helps monthly cash flow but saves less interest overall.
Are there charges for loan prepayment?
RBI rules exempt individual borrowers from prepayment charges on floating-rate home loans. Fixed-rate loans, and other loan types like personal or car loans, may still carry prepayment penalties — check your loan agreement.
Is it better to prepay a loan or invest the money?
Compare your loan's interest rate to your expected investment return, after tax. If your loan rate is higher than what you can reliably earn elsewhere, prepaying is usually the safer, guaranteed "return."