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Loans · Free & private

Home Loan Prepayment Calculator

Got a bonus or some savings? See exactly how much interest a part-payment saves, how many years it cuts from your loan, and whether to lower your EMI or finish sooner.

Your loan today

Your prepayment

How will you prepay?

For example, from your annual bonus. Paid after every 12th EMI.

After prepaying, I want to

You save in interest

₹18,55,389

Every ₹1 you prepay saves ₹1.43 in interest.

Loan ends earlier by

6 yrs

Your EMI stays

₹43,391

Interest without prepaying

₹54.14 L

Interest with prepaying

₹35.58 L

Debt-free by

—

Instead of

—

You save ₹18,55,389 in interest. The loan ends 6 yrs earlier.

Outstanding balance over time

The gap between the two curves is how much faster you become debt-free.

  • With prepayment
  • Without
Show year-by-year balance
Outstanding balance at the end of each year, with and without prepayment
YearWithout prepaymentWith prepayment
1₹49,00,489₹48,00,489
2₹47,92,181₹45,83,342
3₹46,74,300₹43,47,002
4₹45,46,000₹40,89,771
5₹44,06,359₹38,09,804
6₹42,54,375₹35,05,090
7₹40,88,957₹31,73,442
8₹39,08,918₹28,12,479
9₹37,12,965₹24,19,611
10₹34,99,691₹19,92,017
11₹32,67,566₹15,26,627
12₹30,14,923₹10,20,101
13₹27,39,949₹4,68,802
14₹24,40,670₹0
15₹21,14,937₹0
16₹17,60,412₹0
17₹13,74,550₹0
18₹9,54,582₹0
19₹4,97,492₹0
20₹0₹0

Results are estimates based on the figures you enter and standard formulas. They are for information only and are not financial, investment, tax or legal advice. Rates and rules change, so confirm with your bank, fund house, employer or tax adviser before you decide. Read the full disclaimer.

How to use the prepayment calculator

  1. Enter your outstanding loan amount, interest rate and the remaining tenure. Your bank’s app or latest loan statement shows these.
  2. Choose how you will prepay: one time, every month or every year.
  3. Choose whether to finish sooner (keep the same EMI) or lower your EMI (keep the same end date).

The calculator compares your loan with and without the prepayment, month by month.

What prepayment can save on a ₹50 lakh loan

For a ₹50 lakh home loan at 8.5% for 20 years, the EMI is ₹43,391 and the total interest is ₹54,13,879. Here is what different prepayments do when you keep the EMI and finish sooner:

Interest saved by different prepayment plans on a ₹50 lakh loan
PrepaymentInterest savedLoan ends earlier by
₹1 lakh once, right away₹4,23,1361 year
₹5 lakh once, after 1 year₹16,03,6914 years
₹5,000 extra every month₹13,89,2504 years 5 months
₹1 lakh extra every year₹18,55,3896 years

Reduce tenure or reduce EMI?

After a prepayment, your bank lets you either keep the EMI and close the loan sooner, or keep the end date and pay a lower EMI.

  • Reduce tenure: saves the most interest. ₹1 lakh a year on the loan above saves ₹18,55,389 and closes it 6 years early.
  • Reduce EMI: the same prepayments save ₹9,58,553, and your EMI drops a little after every prepayment. Useful if your monthly budget is tight.

Prepay early for the biggest impact

In the first years of a loan, most of each EMI goes to interest. A prepayment then removes principal that would otherwise have collected interest for many years. ₹5 lakh prepaid after year 1 saves ₹16,03,691; the same ₹5 lakh after year 15 saves just ₹2,22,182.

Before you prepay

  • Keep an emergency fund of at least 6 months of expenses, including your EMI.
  • Clear costlier debt first, like credit cards and personal loans.
  • Check charges. Floating-rate home loans for individuals have no prepayment penalty; fixed-rate loans may.
  • Ask for an updated repayment schedule and confirm whether the bank reduced the tenure or the EMI.

Not sure what your EMI is yet? Start with the home loan EMI calculator.

Last reviewed:

Frequently asked questions

Should I reduce my EMI or my tenure after prepaying?
Reducing the tenure saves far more interest. On a ₹50 lakh, 20-year loan at 8.5%, prepaying ₹1 lakh a year saves ₹18,55,389 if you keep the EMI and finish sooner, but only ₹9,58,553 if you lower the EMI instead. Choose a lower EMI only if you need the monthly cash flow.
Are there charges for prepaying a home loan?
RBI rules do not allow banks and housing finance companies to charge prepayment or foreclosure penalties on floating-rate loans taken by individuals for non-business purposes. Fixed-rate loans and business loans may carry charges, so check your loan agreement.
When is the best time to prepay a home loan?
As early as possible. In the early years most of each EMI is interest, so every rupee prepaid then saves the most. ₹5 lakh prepaid after year 1 of a ₹50 lakh loan saves ₹16,03,691; the same amount after year 15 saves only ₹2,22,182.
Should I prepay my home loan or invest the money?
Prepaying gives a guaranteed, risk-free “return” equal to your loan rate. Investing may earn more over long periods but with risk. Many people first build an emergency fund, then split extra money between prepayment and investments.
Does prepaying affect my tax benefits?
In the old tax regime, lower interest means a smaller Section 24(b) deduction (capped at ₹2 lakh a year for a self-occupied house). The interest you save is almost always larger than the tax benefit you give up.