Home >> Calculators >> Prepayment Calculator
Need Help?
Call us on 1800 180 7575
(Mon-Sat 10AM to 5.30PM)
or SMS 'rupee' to 56070
or submit your details below





Prepayment Calculator

Enter the following details to find out how you can reduce your loan period by making additional prepayments.
1. Original Loan Amount (Rs.) *
2. Start Date of the Loan Pick a date  *
3. Loan Duration (Yrs.) *
4. Rate of Interest (%) *
5. Prepayment Penalty (%) *
6. Interest Earned if Money Put in FD (%) *
   

Prepayment Calculator

Loan prepayment is the extra repayment, partially or fully, of the loan amount, in addition to the EMI, prior to the maturity of the loan. Prepayment results in a decrease in the interest burden on a housing loan. For a financial institution prepayment results into loss of interest income and therefore prepayment charges are sometimes applicable. Usually, on prepayment, the EMI is kept constant but the term of the loan is reduced to reflect the reduced principal. This calculator helps you determine how you can reduce your loan tenure by making additional prepayments. It provides the following information:

  • EMI
  • Outstanding Principal (principal amount yet to be paid).
  • Remaining loan duration.
  • Prepayment charges.
  • Interest Paid on the Remaining Loan Amount.
  • Interest earned on FD and other investments.
  • Net savings.

Assumptions:

  • Money is put in FD, and removed every month, to pay EMI
  • There is a tax implication on FD interest earned @ 30%
  • The FD principal gradually falls down to 0, as all EMIs are paid every month from that amount.
  • Interest rate is compounded monthly.

Other calculators you may find useful

Articles you may find useful:

When to prepay your personal loan

Prepaying a personal loan is the effective way to get the debt money off your back. But keep in mind that it comes with a hefty penalty. Most banks have clauses regarding prepayment included in a loan agreement and charge a fee, up to 5%, on the outstanding principal amount. Hence, it is a ...


Low interest rate prepayment charges and processing fees factors to consider before switching your home loan

Home loan space has become increasingly competitive lately. What with SBI and ICICI Bank decreasing their home loan rates; and HDFC and ICICI Bank increasing the prepayment penalty from 2 to 3 per cent and 2.25 per cent respectively.
What does this mean to you?
Let's understand the impact of prepayment penalty through an illustration. Vinay has...


Avoiding home loan prepayment penalties

There is increasing competition being witnessed in the home loan space, which has led to a lot of choice as well as offers for borrowers. The impact is also witnessed in terms of an interest rate war from several players with two of India's biggest lenders SBI and ICICI Bank cutting their home loan rates ...


How home loan prepayment reduces your home loan emi burden

We borrowers are always looking for ways to save costs. Many of us opt for prepayment of loan for the same reason. It saves us quite a large amount, given we follow all the conditions properly. But in many cases, this is accompanied by an expense in the form of a prepayment penalty...

Disclaimer: Every effort is made to ensure that the content (including articles and information) provided on this site is accurate. Neither this website nor the author shall be held accountable, directly or indirectly, for any damage or loss caused by accessing or using the content.
If you find this interesting, then subscribe to our fortnightly newsletter

Looking for Home Loans: Compare and Get Home Loan Offers from different Banks

Comments on this Article
man
January 5, 2010 04:54 pm
seema says :
I found your site very useful.
man
September 23, 2009 06:57 pm
milin mehta says :
send me amortisation chart,which explain me loan amt, toner,principl,int
1  
Write a Comment

Name:
Email:
Comments:
Give your contact details, our advisor will get in touch with you.
* Customer name:
* Mobile:
* Email:
* City:
* Your Post
* Please type the verification code:

 
Email This
* Your Name:
* Your Email:
* Friends Email:
(Separate multiple email addresses with commas.)
OR Send email using your contact list
* Your Message: