Home Loan Prepayment Calculator
Visualize the impact of extra payments on your loan tenure and total interest cost.
Loan Details
Manage Prepayments
No prepayments added yet. Add one to see the impact!
Original Interest
₹ 0
New Interest
₹ 0
Interest Saved
₹ 0
New End Date
Nov 2025
Original: Nov 2025
Amortization Projection
| Date | EMI | Prepayment | Principal | Interest | Balance |
|---|
What is a Home Loan Prepayment Calculator?
A Home Loan Prepayment Calculator helps you understand the benefits of paying off a part of your loan early. Prepayment reduces your outstanding principal, which in turn significantly lowers the interest burden. You can choose to either reduce your EMI or shorten your loan tenure.
How It Works
The calculator adjusts your principal balance based on the prepayment amount. It then recalculates the amortization schedule to show the new tenure or EMI and the total interest saved.
New Principal = Current Principal - Prepayment Amount
Interest Saved = Total Interest (Original) - Total Interest (New)
Example Calculation
Scenario
You have a ₹50L loan at 8.5% for 20 years. You prepay ₹1 Lakh after 2 years.
- 1.Outstanding Principal reduced by ₹1 Lakh.
- 2.Interest saved over remaining 18 years ≈ ₹2-3 Lakhs (depending on tenure reduction).
- 3.Loan tenure might reduce by approx 10-12 months.
Why This Tool is Useful
- ✓Shows exact interest savings from prepayments.
- ✓Helps you decide between tenure reduction vs EMI reduction.
- ✓Motivates you to channel surplus funds into loan repayment.
- ✓Helps you become debt-free faster.
- ✓Visualizes the impact of regular vs one-time prepayments.
Tips & Comparison
- •Reduce Tenure: Always opt to reduce the loan tenure rather than the EMI amount to maximize interest savings.
- •Early Prepayment: Prepaying in the initial years of the loan (when interest component is high) yields the maximum benefit.
- •Windfall Gains: Use annual bonuses or tax refunds to make lump-sum prepayments.
- •Check Charges: Ensure your bank does not charge a penalty for prepayment (usually nil for floating rate loans).