Loan Prepayment Calculator

When I was first building this calculator on my excel sheet, I sort of had this premonition that, I am working on something important.

 

Today I can say that, my excel sheet was the most utilitarian excel sheet I have used till now.

 

What was its utility? It changed the way I looked at my “home loan”.

Loan Prepayment
Calculator

This is not just any home loan prepayment calculator for me. It gave me the inspiration, and guided me to become debt free. Now, after years of painstaking focus and persistence, I am finally debt free. There is no home loan. In fact, there are NO loans any more. It is a different life.

The Interest Burden

Let me give you a snap-shot of my online prepayment calculator. It highlights the interest burden.

 

What it shown here is interesting.

 

A person took a loan of Rs.30 lakhs. On this loan amount, what is charged as interest is a whopping Rs.32.48 lakhs. This is more than the loan amount itself.

 

As a result, what the person has to payback to the bank? Rs.62.48 lakhs. This is what one has to minimise (interest burden).

 

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