Home Loan Prepayment Calculator

How home loan prepayment works

A prepayment is any amount you pay over your regular EMI. Because it reduces the outstanding principal, every future month's interest is charged on a smaller balance — so you finish the loan earlier and pay far less total interest.

What the calculator shows

• Original plan: payoff time and total interest with no prepayment.
• With extra EMI: the shorter payoff time and lower total interest.
• Savings: the months and interest you save by prepaying.

Estimate using standard amortisation. RBI bars prepayment penalties on individual floating-rate home loans; fixed-rate loans may differ — check your agreement. Not financial advice.

Frequently Asked Questions

How does prepayment save interest?

Interest is charged on the outstanding balance. Any amount you pay above the EMI goes straight to principal, so the balance — and the interest charged on it every month after — falls. Over the loan this compounds into large savings.

Is it better to reduce the EMI or the tenure?

Keeping the EMI the same and letting prepayments shorten the tenure usually saves the most interest. This calculator models extra monthly payments that keep the EMI fixed and finish the loan sooner.

Are there prepayment charges?

For floating-rate home loans to individuals, the RBI bars foreclosure and prepayment penalties. Fixed-rate loans may carry a charge — check your loan agreement before making a large prepayment.

When should I prepay?

Prepaying early in the tenure saves the most, because the early years carry the highest interest. Even small, regular extra payments made early have an outsized effect on total interest.

What does "EMIs already paid" mean?

It is the number of EMIs you have already paid on the loan. The calculator uses it to find your current outstanding balance and then applies the extra payments from that point on.