Loan Prepayment Calculator - Calculate Savings
Calculate interest savings from part prepayment of your loan. See how prepayment reduces your loan tenure.
Total Interest Saved: ₹0
You will pay off your loan earlier.
Calculation Summary
Financial Arbitrage: Prepay Loan vs Invest in Mutual Fund SIP?
Smart Decision RuleIf your home loan interest rate is 8.50% (with Section 24b tax relief reducing effective cost to ~6.5%), investing surplus capital into a diversified Equity Mutual Fund SIP compounding at an historical 12.0% - 13.5% CAGR generates significantly higher net terminal wealth than pre-closing low-cost housing debt.
Guaranteed Return: 8.50% (Debt-free peace of mind)
Net Wealth Alpha: +3.50% to +5.00% annual excess gain
RBI Prepayment Penalty & Foreclosure Charges Rules (2026)
Under Reserve Bank of India (RBI) master circular guidelines, individual floating rate borrowers are legally shielded against foreclosure penalties:
| Loan Category | Interest Rate Type | Borrower Entity | Statutory Prepayment Penalty | RBI Statutory Rule |
|---|---|---|---|---|
| Home Loan / LAP | Floating Rate | Individual (Single / Joint) | NIL (0% Penalty) | RBI DBOD No. Dir. BC. 107/13.03.00/2011-12 strictly prohibits penalty |
| Personal Loan / Auto Loan | Floating Rate | Individual (Non-Business) | NIL (0% Penalty) | Zero prepayment penalty mandated across all scheduled banks & NBFCs |
| Fixed Rate Loans | Fixed Rate | Individual | 2.0% – 4.0% + 18% GST | Lenders permitted to levy charges as stated in original sanction letter |
| Commercial / MSME Loan | Floating or Fixed | Proprietorship, LLP, Pvt Ltd | 2.0% – 3.5% + 18% GST | Corporate/non-individual entities excluded from RBI zero-penalty shield |
Visualizations
Payment Breakdown
Balance Over Time
Monthly Breakdown
Cumulative View
Amortization Schedule
About Loan Part Prepayment Calculator
About This Calculator
Our Loan Part Prepayment Calculator is a free online tool that helps you calculate and plan your finances. Simply enter the required values and get instant results with detailed breakdowns and visual charts.
Use this calculator to make informed financial decisions and plan your budget effectively.
Frequently Asked Questions
How do I use the Loan Part Prepayment Calculator?
Simply enter the required values in the input fields and click Calculate. The results will be displayed instantly with visual charts and detailed schedules.
Is the Loan Part Prepayment Calculator free to use?
Yes, all our calculators are completely free to use. No registration or payment required.
Are the calculations accurate?
Our calculators use standard formulas and provide accurate results. However, actual results may vary slightly based on specific lender terms.