Home loan prepayment calculator
Prepaying means paying back part of your home loan ahead of schedule. Banks charge interest on the balance you still owe, so each rupee you prepay stops attracting interest from that day. In the first years, most of your EMI is interest. A prepayment made then cuts far more interest than the same amount paid near the end. The calculator below opens on the prepayment panel. Enter a one-time amount, an extra monthly amount, or both. Then choose whether to finish sooner or lower your EMI. You will see the interest saved, the time saved and your new EMI. RBI rules bar banks from charging a prepayment penalty on a floating-rate home loan taken by an individual. Fixed-rate loans may carry a fee, so check your agreement.
₹50 L
- Principal amount
- Total interest
- Monthly EMI
- ₹39,974
- Principal amount
- ₹50,00,000
- Total interest
- ₹45,93,875
- Total amount
- ₹95,93,875
You'll pay ₹45.94 L interest on a ₹50 L loan.
Runs in your browser. We store nothing you type.
Worth knowing
Interest vs loan
You repay 0.92× your loan in interest alone.
When it tips
From year 12, more of each EMI repays the loan than pays interest.
One extra EMI a year
Pay one extra EMI each year to save ₹7.8 L and finish 3 years sooner.
Common questions
- How does prepaying a home loan save money?
- Interest is calculated on the outstanding balance. A prepayment reduces that balance straight away, so every later month has less interest.
- Should I shorten the tenure or lower the EMI?
- Shortening the tenure saves more interest overall. Lowering the EMI gives you more room each month. Choose based on your cash flow.
- Is there a prepayment penalty?
- Not on floating-rate home loans taken by individuals, because RBI rules bar it. Fixed-rate loans can have charges, so read your loan agreement.
- When is the best time to prepay?
- As early as you can. In the early years most of the EMI is interest, so extra payments have the biggest effect then.