Which option saves more interest with the same yearly budget?
Monthly prepayment often saves more because principal is reduced earlier.
Calculator
Lump Sum vs Monthly Prepayment Calculator
If your annual extra budget is fixed, compare monthly discipline against year-end lump sum to pick the best interest-saving strategy.
Monthly prepayment
Extra per month₹10,000
Projected interest₹23,61,548
Closure143 mo
Year-end lump sum
Lump sum per year₹1,20,000
Projected interest₹24,73,902
Closure146 mo
Better by this model: Monthly prepayment with approx ₹1,12,354 interest difference.
FAQs
When does year-end lump sum make more sense?
It is useful when cash flow is irregular or bonus-based.
Should I wait for bonus to prepay?
If possible, partial monthly prepayment can still outperform waiting for year-end.
Can I combine monthly and lump sum payments?
Yes, mixed strategy can be simulated by splitting your annual budget across both methods.