Quick Summary: Loan Prepayment Saver

Loan prepayment reduces the outstanding principal balance immediately. Since interest is calculated on the reducing balance, prepaying ₹1 Lakh early in a 20-year home loan can save over ₹4 Lakhs in total interest. Banks usually default to 'Reduce Tenure' when you prepay, which is mathematically superior to 'Reduce EMI' for interest savings.

How to use the Loan Prepayment Saver

  1. Enter Loan Details

    Input your current balance, rate, and remaining months.

  2. Input Prepayment Amount

    Enter the lump-sum or monthly extra payment you plan to make.

  3. Review Interest Saved

    Check the total reduction in interest cost and the new (shorter) loan end date.

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Regulatory Disclaimer

Last verified May 2026

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.