Your Loan Today

The balance still owed, not the amount originally sanctioned — your statement or net banking shows it

Your Prepayments

Add up to three. "After how many months" counts from today, so 12 means a year from now. Set a repeat if you expect to do this every year.

The Question Every Other Calculator Makes You Ask Twice

When you part-pay a home loan, the lender asks whether you want the tenure reduced or the EMI reduced. Almost every prepayment calculator makes that a toggle: you run it one way, write the answer down, run it the other way, then compare. This one computes both from the same figures and shows them together, because the comparison is the entire decision.

Tenure Down or EMI Down?

Reducing the tenure keeps your instalment where it is and ends the loan sooner. Reducing the EMI keeps the loan running to its original last month but lowers what you pay each month. Shortening the tenure always saves more interest — often several times more — because interest accrues on the balance for fewer months. Choosing the lower EMI is not irrational, though: it buys monthly breathing room, which is the right answer if your cash flow is stretched or your income is uncertain. Either way the choice is worth making with the numbers in front of you, and the two figures above are there for exactly that.

Prepay Early — the Timing Matters More Than the Amount

A home loan is front-loaded: in the first years almost all of your EMI is interest and very little is principal. A prepayment made in year two therefore removes interest that would have accrued for the next eighteen years, while the same amount paid in year fifteen removes very little. If you can only prepay once, doing it early is worth far more than doing it big.

A Bonus Every Year, Not One Lump Sum

The realistic pattern is not a single windfall — it is an annual bonus, part of which goes into the loan every year. This calculator takes up to three prepayments and lets any of them repeat every six or twelve months, so you can model what you actually intend to do and watch the tenure collapse year by year. Each prepayment is applied at the end of the month you name, after that month's instalment, which is the order a lender books it and the order that determines the interest it truly saves.

What Your Lender May Charge

On a floating-rate home loan to an individual borrower, banks and NBFCs have not been permitted to levy foreclosure or prepayment charges since RBI's 2012 circular, which was extended in 2014 to all floating-rate term loans to individual borrowers. The RBI (Pre-payment Charges on Loans) Directions, 2025 — issued on 2 July 2025 and effective from 1 January 2026 — consolidate and widen that position, but they apply only to loans sanctioned or renewed on or after that date, so most loans running today are still governed by the earlier regime. Fixed-rate loans are not covered either way: there, charges remain permissible under the lender's board-approved policy. Read your sanction letter before you transfer the money, and ask for a revised amortisation schedule in writing afterwards.

Prepay or Invest?

Prepaying earns you a guaranteed, tax-free return equal to your loan rate — around 8.5% at current pricing. Beating that reliably after tax is harder than it sounds, which is the case for prepaying. The case against is liquidity: money put into a home loan is very difficult to get back out. If you claim a deduction on home-loan interest under the old tax regime, your effective loan cost is lower than the headline rate and the comparison narrows; under the new regime there is no such deduction on a self-occupied property, and prepaying looks better. The home loan EMI calculator shows the loan as it stands today, and the income tax calculator shows which regime you are actually in.

FAQs about Home Loan Prepayment Calculator

Reducing the tenure saves more interest — usually several times more — because the balance carries interest for fewer months. Reducing the EMI saves less but frees up monthly cash flow, which is the right choice if your income is tight or uncertain. This calculator shows both figures at once so the trade-off is explicit.
It depends far more on when you prepay than on how much. Because a home loan is front-loaded with interest, a payment in the early years removes interest that would have accrued for the whole remaining term. Enter your outstanding balance, rate and remaining tenure above to see the saving on your own loan.
Not on a floating-rate home loan to an individual borrower — RBI barred foreclosure and prepayment charges on those in 2012 and extended it to all floating-rate term loans to individuals in 2014. Fixed-rate loans are not covered and charges there remain permissible under the lender's board-approved policy.
They were issued on 2 July 2025 and take effect from 1 January 2026, consolidating and widening the ban on pre-payment charges — but only for loans sanctioned or renewed on or after that date. Loans running today generally remain under the earlier regime, so check your sanction letter rather than assuming.
Prepaying gives a guaranteed, tax-free return equal to your loan rate, which is a high bar to beat consistently after tax. Against that, the money becomes illiquid. If you claim home-loan interest relief under the old tax regime your effective cost is lower and the case narrows; under the new regime there is no such deduction on a self-occupied home.
Yes, and for most borrowers an annual part payment out of a bonus is far more realistic than one large lump sum. Set a prepayment to repeat every twelve months in the form above to model it — the tenure falls year after year rather than in one step.
As early as you can. In the first years of a home loan almost the entire EMI is interest, so a prepayment then cancels many years of future interest; the same amount paid near the end of the loan cancels very little. Timing matters more than size.