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See how much interest a one-time or yearly prepayment saves on your home loan, and the difference between cutting the tenure and cutting the EMI.
Your loan
What you save
Keeping the EMI and ending the loan sooner saves the most interest.
Loan left at each year end
A prepayment is extra money paid towards your loan beyond the EMI. Because it cuts the amount on which interest is charged, it can save a lot of interest, especially early in the loan.
This calculator shows the interest saved by a one-time prepayment, a yearly one or both, and lets you choose between keeping the EMI (the loan ends sooner) and keeping the tenure (the EMI falls).
A ₹50 lakh home loan at 8.5% for 20 years, with ₹5 lakh prepaid after a year
Prepaying earns a sure return equal to your loan rate. Investing may earn more or less after tax and risk. Many people do some of each, prepaying more when the loan rate is high.
Not on floating-rate home loans taken by individuals; RBI rules forbid it. Fixed-rate loans may carry a charge, usually 2% to 4% of the amount prepaid.
Reducing the tenure saves more interest. Reducing the EMI eases your monthly budget instead.
Most banks allow part-prepayments any time, some with a minimum amount such as one EMI. Check your loan agreement.
Results are estimates. Returns are assumed constant, rates and tax rules can change, and your actual numbers will differ. This is not financial or tax advice.