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Home Loan Prepayment Calculator

See how much interest you save, and how much sooner your loan ends, by paying a little extra every month, once a year or in one go.

years

Paid on top of every EMI.

For example from a bonus, paid with the last EMI of each year.

After each prepayment

Interest saved

₹13,89,250

Loan cleared in
15 years 7 months (4 years 5 months sooner)
EMI (unchanged)
₹43,391
Interest without prepaying
₹54,13,879₹54.14 lakh
Interest with prepayments
₹40,24,629₹40.25 lakh
Total prepaid
₹9,30,000₹9.3 lakh
What you repay with prepayments
  • Principal₹50,00,000 (55.4%)
  • Interest₹40,24,629 (44.6%)
Loan still owed, with and without prepayingWithout prepayingWith prepayments

Repayment schedule with prepayments

YearEMIs paidPrepaidPrincipalInterestBalance
₹5,20,694₹60,000₹1,61,905₹4,18,789₹48,38,095
₹5,20,694₹60,000₹1,76,216₹4,04,478₹46,61,879
₹5,20,694₹60,000₹1,91,792₹3,88,902₹44,70,087
₹5,20,694₹60,000₹2,08,745₹3,71,949₹42,61,343
₹5,20,694₹60,000₹2,27,196₹3,53,498₹40,34,147
₹5,20,694₹60,000₹2,47,278₹3,33,416₹37,86,869
₹5,20,694₹60,000₹2,69,135₹3,11,559₹35,17,735
₹5,20,694₹60,000₹2,92,924₹2,87,770₹32,24,811
₹5,20,694₹60,000₹3,18,816₹2,61,878₹29,05,995
₹5,20,694₹60,000₹3,46,996₹2,33,698₹25,58,999
₹5,20,694₹60,000₹3,77,667₹2,03,027₹21,81,332
₹5,20,694₹60,000₹4,11,050₹1,69,644₹17,70,282
₹5,20,694₹60,000₹4,47,383₹1,33,311₹13,22,899
₹5,20,694₹60,000₹4,86,927₹93,767₹8,35,972
₹5,20,694₹60,000₹5,29,967₹50,727₹3,06,005
₹2,84,220₹30,000₹3,06,005₹8,215₹0

Tap a year to see its months.

How to use this calculator

  1. Enter your loan amount, interest rate and tenure.
  2. Add any prepayments: extra every month, extra once a year, or a single amount in a year you choose.
  3. Choose whether each prepayment should shorten the loan or lower the EMI.
  4. Read the interest saved and the new end date. The Compare chart shows the balance with and without prepaying.

How prepayment is calculated

The calculator works month by month. Each month, interest is charged on the balance, the EMI is paid, and then any prepayment due that month comes straight off the principal. Yearly and one-time prepayments are paid with the last EMI of the loan year.

If you choose Finish sooner, the EMI stays the same and the loan ends early. If you choose Lower the EMI, the EMI is recalculated after each prepayment so the loan still ends on the original date.

Example: on a ₹50,00,000 loan at 8.5% for 20 years, paying ₹5,000 extra every month clears the loan in 15 years 7 months instead of 20 years, and cuts total interest from ₹54,13,879 to ₹40,24,629— a saving of ₹13,89,250.

Frequently asked questions

Is it better to reduce the EMI or the tenure after a prepayment?

Reducing the tenure saves more interest, because the same EMI keeps paying down the loan faster. A ₹5 lakh prepayment in year 2 on a ₹50 lakh loan at 8.5% over 20 years saves ₹14,57,301 if you keep the EMI, but ₹4,77,894 if you lower the EMI instead (it falls from ₹43,391 to ₹38,864). Lowering the EMI suits you if you need more room in your monthly budget.

Does it matter when I prepay?

Yes — the earlier, the better, because early in a loan most of each EMI is interest. The same ₹5 lakh saves ₹14,57,301 if paid in year 2, but only ₹2,22,182 in year 15.

How much does a small extra payment every month save?

More than most people expect. Paying ₹5,000 a month on top of the EMI on a ₹50 lakh loan at 8.5% saves ₹13,89,250 in interest and clears the loan 4 years 5 months sooner.

Will my bank charge a prepayment penalty?

Under RBI rules, banks and housing finance companies cannot charge a prepayment or foreclosure penalty on floating-rate home loans taken by individuals (not for business). Fixed-rate loans may carry a charge — check your loan agreement.

Should I prepay or invest the extra money?

Prepaying gives a guaranteed "return" equal to your loan rate (8.5% here), with no risk. Investing could earn more, or less. Many people do both: keep an emergency fund first, then split the spare money between prepaying and investing.

Does prepaying affect the tax benefit on my home loan?

Prepaying reduces the interest you pay, so any interest deduction you claim under Section 22 of the Income-tax Act, 2025 also falls. For a home you live in, that deduction (up to ₹2,00,000 a year) is available only in the old tax regime; the new regime under Section 202 does not allow it. Each rupee of interest saved is a full rupee kept, while a deduction is worth only your tax rate on it — but check with your tax adviser.

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Last updated . For information only — not financial advice. Check the final figures with your lender or bank.