Home loan prepayment calculator
A Rs 5,00,000 part payment after 3 years on a Rs 50,00,000 home loan at 8.5% for 20 years saves Rs 13,19,639 in interest when you keep the same EMI.
Results update as you type. Nothing you enter is stored.
How it works
Home loans run for decades, so a prepayment in the early years removes many months of interest. Most home loan EMIs in the first years are mostly interest, which is why an early part payment shortens the tenure so sharply.
Floating rate home loans to individuals are linked to an external benchmark under RBI rules (circular of 4 Sep 2019), so your rate can change; rerun the calculator when it does.
Formula
Balance after month m: reduce by the prepayment, then repay at the same EMI (fewer months) or a new EMI over the remaining months
Frequently asked questions
How much interest does a home loan prepayment save?
It depends on the amount, the timing and the rate; the result shows it for your loan.
Should I reduce tenure or EMI?
Shortening the tenure saves more interest; lowering the EMI improves monthly cash flow.
Is there a penalty for prepaying a home loan?
Check your loan terms; the rules differ for floating and fixed rate loans and for borrower types.
Related
This tool is for information only and is not investment, tax or legal advice. Results depend on the inputs and assumptions you enter; check important figures with the official source or a qualified professional.