Home Loan Prepayment Calculator
Estimate savings and adjust your prepayments easily for your home loan.
Use this calculator to understand how making part-payments on your home loan can reduce your total interest burden and shorten your loan tenure significantly.
₹
%
Mths
5 Years30 Years
₹
Assuming a one-time part payment made today.
Total Interest Saved
₹15,30,706
Tenure Reduced By
6Y 6M
Impact Summary
New Tenure
162 Months
Effective ROI
8.5%
How Home Loan Prepayment Works
Home loan prepayment allows borrowers to pay an additional amount towards the principal over and above the regular EMI. This reduces the outstanding loan balance, resulting in substantial interest savings and faster loan closure.
Benefits of Home Loan Prepayment
Reduces total interest payable
Shortens loan tenure significantly
Improves debt-free timeline
No penalty on floating-rate home loans (as per RBI norms)
Better financial flexibility in the long term
How Prepayment Impacts Your Loan
Option 1: Reduce Tenure
- EMI remains same
- Loan ends earlier
- Maximum interest savings
Option 2: Reduce EMI
- Monthly burden reduces
- Tenure remains same
- Moderate interest savings
When Should You Make a Prepayment?
- During early years of loan tenure
- When you receive bonus or surplus income
- When interest rates are high
- When long-term savings matter more than liquidity
Important Points to Note
- Prepayment benefits are higher in initial loan years
- Floating-rate loans usually have zero prepayment charges
- Fixed-rate loans may attract penalties
- Calculator excludes GST, processing fees, and legal charges