What is it?
The Home Loan Prepayment Calculator shows how paying a little extra every month, or a lump sum once, closes your loan earlier and saves interest.
Who is it for?
Home-loan borrowers with a bonus, savings or a salary hike who want to know whether prepaying is worth it.
How to use it
- Enter the Loan amount (or outstanding balance), Interest rate and remaining Tenure.
- Add an Extra payment every month (prepayment), and/or a Lump-sum prepayment (optional) and when it is paid after.
- Compare Total interest without and with prepayment, the Interest saved, and when the Loan closes in.
Why early prepayments save so much
Interest is charged on the outstanding balance. Money paid in the early years cuts the balance on which every later month’s interest is worked out, so each rupee prepaid early saves several rupees of interest.
Lower EMI or shorter tenure?
After a prepayment, banks ask whether to reduce the EMI or the tenure. Reducing the tenure saves far more interest; this calculator assumes that.
Before you prepay
- Floating-rate home loans to individuals in India have no prepayment penalty. Fixed-rate loans may.
- Keep an emergency fund first, and compare with what the money could earn elsewhere. Under the old tax regime, home-loan interest and principal have deductions that reduce the benefit slightly.
This is an estimate to help you plan, not financial or tax advice. For big decisions, check the latest rules and talk to a qualified adviser.
Errors and how to fix them
- No interest saved: the prepayment is zero, or the lump sum is set after the loan ends.
Open the tool: Home Loan Prepayment Calculator
Still stuck?
Contact support. Tell us which tool or page you were using, what you tapped, what you saw, and your phone or computer and browser (for example: Android phone, Chrome). We reply by email.
Questions, or an error not listed here?
Tell us in the comments: what you were doing, the exact message you saw, and your device and browser. We read every comment and add new fixes to this article.