Home Loan Prepayment Calculator

Calculate your massive interest savings and exact tenure reduction by making a part-payment on your home loan.

Your current remaining principal balance.
The lump sum amount you wish to pay today.

Prepayment Impact Analysis

Assuming you keep your EMI the same to maximize interest savings.

Without Prepayment

₹0
Total Future Interest
0 Months
Remaining Tenure

With Prepayment

₹0
Total Future Interest
0 Months
Remaining Tenure

Total Interest Saved

₹0

Your loan will finish 0 months earlier!

Why Should You Use a Home Loan Prepayment Calculator?

A home loan is usually the biggest financial liability a person carries. Because home loans have very long tenures (often 20 to 30 years), the total interest you end up paying to the bank can sometimes exceed the actual principal amount you borrowed! This is why smart borrowers use a Home Loan Prepayment Calculator. By making a part payment towards your principal using your yearly bonus, tax refunds, or surplus savings, you can drastically reduce your debt.

When you prepay, the lump sum is directly deducted from your outstanding principal. Since home loans work on a reducing balance method, your future interest is calculated on a much smaller base amount. Our home loan foreclosure calculator assumes that you keep your monthly EMI exactly the same after making the part-payment. By doing this, your loan tenure shrinks rapidly, saving you massive amounts in future interest payouts and helping you become completely debt-free years ahead of schedule.

Frequently Asked Questions About Home Loan Prepayment

Should I reduce my EMI or reduce my loan tenure after prepayment?
To maximize your financial savings, you should always choose to reduce your loan tenure while keeping your EMI the same. Reducing the tenure significantly slashes the total interest you will pay to the bank. Reducing your EMI only gives you short-term monthly cash flow relief, but drastically lowers your overall interest savings.
Are there any penalty charges for prepaying a home loan in India?
For individual borrowers on a Floating Interest Rate, the RBI has strictly mandated that banks and NBFCs cannot charge any prepayment or foreclosure penalties. However, if your home loan is on a Fixed Interest Rate, or if the borrower is a corporate entity, the bank may charge a penalty of 2% to 4% on the prepaid amount.
When is the best time to make a home loan part-payment?
The best time to make a prepayment is during the early years of your loan. In a standard home loan amortization schedule, the majority of your EMI goes towards paying interest in the first few years. By making part-payments early on, you aggressively chop down the principal balance before the heavy interest compounds.

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