Home Loan Prepayment Calculator
See how much interest a part-prepayment saves on a home loan and how much sooner the loan ends, with the original and revised repayment compared.
Original and revised repayment
| Measure | Original | With prepayment |
|---|---|---|
| Monthly EMI | ₹19,695 | ₹19,695 |
| Number of EMIs | 180 | 151 |
| Total interest | ₹15,45,062 | ₹11,55,095 |
| Prepaid in total | ₹0 | ₹2,00,000 |
| Total paid to the lender | ₹35,45,062 | ₹31,55,095 |
Year-by-year schedule, original and revised
| Year | Original interest | Original balance | Revised interest | Prepaid | Revised balance |
|---|---|---|---|---|---|
| 1 | ₹1,67,354 | ₹19,31,016 | ₹1,67,354 | ₹2,00,000 | ₹17,31,016 |
| 2 | ₹1,61,256 | ₹18,55,935 | ₹1,43,578 | ₹0 | ₹16,38,256 |
| 3 | ₹1,54,620 | ₹17,74,217 | ₹1,35,379 | ₹0 | ₹15,37,298 |
| 4 | ₹1,47,396 | ₹16,85,276 | ₹1,26,455 | ₹0 | ₹14,27,415 |
| 5 | ₹1,39,535 | ₹15,88,473 | ₹1,16,742 | ₹0 | ₹13,07,820 |
| 6 | ₹1,30,978 | ₹14,83,114 | ₹1,06,171 | ₹0 | ₹11,77,654 |
| 7 | ₹1,21,666 | ₹13,68,442 | ₹94,666 | ₹0 | ₹10,35,982 |
| 8 | ₹1,11,530 | ₹12,43,634 | ₹82,143 | ₹0 | ₹8,81,788 |
| 9 | ₹1,00,498 | ₹11,07,794 | ₹68,514 | ₹0 | ₹7,13,964 |
| 10 | ₹88,491 | ₹9,59,947 | ₹53,680 | ₹0 | ₹5,31,306 |
| 11 | ₹75,422 | ₹7,99,032 | ₹37,534 | ₹0 | ₹3,32,503 |
| 12 | ₹61,199 | ₹6,23,894 | ₹19,962 | ₹0 | ₹1,16,127 |
| 13 | ₹45,718 | ₹4,33,275 | ₹2,917 | ₹0 | ₹0 |
| 14 | ₹28,869 | ₹2,25,806 | ₹0 | ₹0 | ₹0 |
| 15 | ₹10,531 | ₹0 | ₹0 | ₹0 | ₹0 |
Assumptions and how this is calculated
The original EMI is P × r × (1+r)n / ((1+r)n − 1), the same as the EMI calculator. Each month the interest is the opening balance × the monthly rate, the rest of the EMI repays principal, and a prepayment then lowers the balance. The loan ends when the balance reaches zero.
- The interest rate is fixed for the rest of the loan. On a floating-rate loan the lender can change the rate, which changes every figure here.
- The EMI stays the same and the loan ends earlier. Some lenders offer to lower the EMI instead; that gives a different result.
- A prepayment is applied right after the EMI of the month you choose and reduces the outstanding principal from that day. Lenders may credit it a few days later.
- Fees are only what you enter. Check the sanction letter and Key Facts Statement for any pre-payment charge, processing fee or GST on fees.
- Interest is charged monthly on the opening balance. Lenders may use actual days and round the EMI, so a loan statement can differ by a few rupees.
RBI's Pre-payment Charges on Loans Directions, 2025 (2 July 2025) apply to loans sanctioned or renewed on or after 1 January 2026: regulated lenders may not levy pre-payment charges on floating-rate loans to individuals for non-business purposes. For a fixed-rate loan, or one sanctioned earlier, the sanction letter decides. Source: RBI notification.
Worked examples
₹20 lakh left on a home loan at 8.5% for 15 years, ₹2 lakh prepaid after the 12th EMI
- The EMI stays the same; the extra payment lowers the balance, so less interest is charged each month and the loan ends sooner
Interest saved ₹3,89,968 · loan ends 2 years 5 months sooner
Same loan, ₹5,000 extra every month from the first EMI
- Each month the extra ₹5,000 goes against the principal after the EMI
Interest saved ₹5,62,296 · loan ends 4 years 11 months sooner
Useful for
- See what a bonus or savings put into a home loan would save
- Compare a one-time prepayment with a small extra amount every month
Learn more
Questions
Does prepayment reduce the EMI or the tenure?
This calculator keeps the EMI the same and shortens the tenure, which saves the most interest. Some lenders let you lower the EMI instead, which gives a different result.
Are there charges for prepaying a home loan?
RBI's Pre-payment Charges on Loans Directions, 2025 say regulated lenders may not levy pre-payment charges on floating-rate loans to individuals for non-business purposes, for loans sanctioned or renewed on or after 1 January 2026. Fixed-rate loans and older loans follow the sanction letter. You can enter a fee percentage to see its effect.
Why can my lender's figures differ?
Floating rates change, lenders may credit a prepayment a few days later, use actual days for interest and round the EMI. This is an estimate from the numbers you enter, not a lender's statement.
Is it better to prepay early or late in the loan?
Early. Most of an early EMI is interest, so principal repaid early stops the most future interest. The calculator lets you change the EMI number at which the prepayment happens to see the difference.
Should I prepay or invest the money?
That depends on the loan rate, what you could earn after tax and your risk. This calculator only shows what the prepayment saves; it does not recommend either.