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Model a one-time lump-sum prepayment or extra monthly payments on a home loan to see interest saved, EMIs saved, the new shorter tenure, and a chart comparing the original and prepaid payoff.
Last updated 5 September 2026
Interest saved
₹11,73,055
EMIs saved
76 months
Original tenure
240 months
New tenure
164 months
Monthly EMI (unchanged)
₹26,035
Total interest (with prepayment)
₹20,75,271
Loan amount, interest rate and tenure, same as your sanction letter.
A one-time lump sum in a specific month, or a fixed extra amount added to every EMI from now on.
Interest saved, EMIs saved and the new tenure appear instantly, with a chart comparing the loan balance with and without the prepayment.
Each month: balance = balance − (EMI − interest + extra payment), interest = balance × monthly rate
The loan is considered closed the month the balance reaches zero — that is the new, shorter tenure.
Adding ₹5,000 to every EMI reduces the outstanding balance faster each month, so less interest accrues going forward. Simulating month by month, the loan closes about 49 months early and total interest drops by roughly ₹8.6 lakh.
Interest is charged on the outstanding balance, which is highest in the early years. A rupee of prepayment in year 1 removes many more future interest charges than the same rupee in year 15, when the balance is already much smaller.
If you have a choice, prepay as early in the loan as you can, and check whether your lender charges a prepayment penalty (most floating-rate home loans in India do not, by RBI mandate).
This is really a comparison between your loan's interest rate and what you could realistically earn investing that same money — if your home loan costs 8.5% and you're confident of a 12% long-term SIP return, investing may build more wealth over time, even though prepaying feels safer.
There is no universally correct answer: prepaying guarantees a return equal to your loan rate with zero risk, while investing carries market risk for a potentially higher return. Many people split the difference — prepaying a moderate amount for peace of mind while still investing the rest.
This calculator assumes the common default: your EMI stays exactly the same and the tenure shortens. Some lenders let you choose to reduce the EMI instead and keep the original tenure — ask your lender which option they apply.
By RBI rules, floating-rate home loans to individuals cannot carry a prepayment penalty. Fixed-rate loans and other loan types may still charge one — check your loan agreement.
Run the calculator again using the reduced balance and remaining tenure as your new starting point to model a second prepayment.
A lump sum applied early saves the most per rupee, but a smaller recurring extra payment is often easier to sustain. Try both here with the amounts you can realistically afford.
It reduces the interest and principal you pay in future years, which in turn reduces the deduction available on those components going forward — factor this in if the tax benefit is significant to you.
This calculator provides estimates for general information only. Results are mathematical calculations based on the figures you enter and standard formulas. Actual bank, loan, deposit and investment products may differ due to fees, rounding conventions, day-count methods and changing rates and rules. Projected investment returns are not guaranteed and you may get back less than you invest. Nothing here is financial, tax or investment advice — verify the actual terms with the relevant institution or a qualified adviser before making a decision. See our full disclaimer.