LOANS & MORTGAGES · CALCULATOR 04
Loan EMI & Prepayment ROI Calculator
Banks make their highest profits during the first 5 years of your loan when over 75% of every EMI goes toward pure interest. This calculator shows how making targeted early prepayments obliterates compounding interest and cuts years off your debt.
1. Loan Details
₹40.00 Lakh
₹5 Lakh₹1 Crore₹2 Crore
8.75% p.a.
7.0%8.75% (Home Loan Avg)15.0%
20 Years (240 Months)
5 Years20 Years30 Years
2. Prepayment Strategy
Lump Sum Amount₹2,00,000
Prepay at YearYear 3
Standard Monthly EMI
₹35,348
Tenure Shaved
1.8 Years
Total Interest Saved
₹6.12 Lakh
PREPAYMENT SAVINGS VERDICT
With your targeted prepayment plan, your net interest savings is
₹6.12 Lakh
with prepayment (-1.8 yrs)standard 20y loan
You cut 22 months (1.8 years) off your loan and save ₹6,11,958 in interest — effectively earning a guaranteed, risk-free 8.75% tax-free yield.
Guaranteed Prepayment Yield
Every rupee you prepay saves you a compound 8.75% interest that would otherwise go straight to the bank. This makes prepayment a 100% risk-free, tax-free 8.75% yield that beats fixed income products.
Original Total Interest:₹44,83,623
New Total Interest:₹38,71,665
New Loan Closure:218 Months (vs 240)
Amortization & Balance Schedule
Year-by-year principal paydown, interest paid, and early closure trajectory.
| Year | Opening Balance | Principal Paid | Interest Paid | Prepayment | Closing Balance |
|---|---|---|---|---|---|
| Year 1 | ₹40,00,000 | ₹77,230 | ₹3,46,952 | — | ₹39,22,770 |
| Year 2 | ₹39,22,770 | ₹84,265 | ₹3,39,916 | — | ₹38,38,505 |
| Year 3 | ₹38,38,505 | ₹91,941 | ₹3,32,240 | ₹2,00,000 | ₹35,46,564 |
| Year 4 | ₹35,46,564 | ₹1,18,536 | ₹3,05,645 | — | ₹34,28,029 |
| Year 5 | ₹34,28,029 | ₹1,29,334 | ₹2,94,847 | — | ₹32,98,695 |
| Year 6 | ₹32,98,695 | ₹1,41,116 | ₹2,83,066 | — | ₹31,57,579 |
| Year 7 | ₹31,57,579 | ₹1,53,971 | ₹2,70,211 | — | ₹30,03,609 |
| Year 8 | ₹30,03,609 | ₹1,67,997 | ₹2,56,184 | — | ₹28,35,612 |
| Year 9 | ₹28,35,612 | ₹1,83,301 | ₹2,40,881 | — | ₹26,52,311 |
| Year 10 | ₹26,52,311 | ₹1,99,998 | ₹2,24,183 | — | ₹24,52,313 |
| Year 11 | ₹24,52,313 | ₹2,18,217 | ₹2,05,964 | — | ₹22,34,096 |
| Year 12 | ₹22,34,096 | ₹2,38,096 | ₹1,86,085 | — | ₹19,95,999 |
| Year 13 | ₹19,95,999 | ₹2,59,786 | ₹1,64,395 | — | ₹17,36,214 |
| Year 14 | ₹17,36,214 | ₹2,83,451 | ₹1,40,730 | — | ₹14,52,763 |
| Year 15 | ₹14,52,763 | ₹3,09,272 | ₹1,14,909 | — | ₹11,43,490 |
| Year 16 | ₹11,43,490 | ₹3,37,446 | ₹86,735 | — | ₹8,06,045 |
| Year 17 | ₹8,06,045 | ₹3,68,186 | ₹55,996 | — | ₹4,37,859 |
| Year 18 | ₹4,37,859 | ₹4,01,726 | ₹22,455 | — | ₹36,133 |
| Year 19 | ₹36,133 | ₹36,133 | ₹271 | — | ₹0 |