Home Loan Prepayment Calculator
See how much interest and tenure you can save by prepaying your home loan.
₹
%
yrs
₹
Interest Saved
₹10,44,694
Tenure reduced by 3 yrs 3 mo
Without Prepayment
EMI₹39,390
Total Interest₹30,90,125
Tenure15 years
With Prepayment
EMI₹39,390
Total Interest₹20,45,430
Tenure11 yrs 9 mo
Effective return on prepayment: 208.9% — compare this with your investment options.
▶How is this calculated?
The calculator compares two scenarios — your loan without any prepayment, and with a lump-sum prepayment. The new principal is reduced, and depending on your choice:
Reduce Tenure: EMI stays the same, but the loan ends sooner — saving more interest.
Reduce EMI: Tenure stays the same, but monthly EMI drops — improving cash flow.
Frequently Asked Questions
Should I reduce tenure or EMI after prepayment?▼
Reducing tenure saves more total interest because you pay off the loan faster. Reducing EMI lowers your monthly outflow, which helps if cash flow is tight. If you can afford the current EMI, reducing tenure is almost always better financially.
Is there a penalty for home loan prepayment?▼
RBI mandates that banks cannot charge prepayment penalties on floating-rate home loans. Fixed-rate loans may carry a penalty of up to 2%. Check your loan agreement for specifics.
When is the best time to prepay a home loan?▼
Earlier is better — the interest saved is highest in the early years of the loan when the outstanding principal is large. Even small prepayments early on can save significant interest over the loan tenure.
This calculator provides estimates for informational purposes only. Actual outcomes may vary based on applicable laws, financial institutions, products and individual circumstances.