Home Loan Prepayment Calculator
A part-prepayment cuts the outstanding principal, so every later month charges less interest.
Keeping the EMI and shortening the tenure usually saves far more than keeping the tenure and lowering the EMI.
How to use the Home Loan Prepayment Calculator
- Enter the outstanding principal, interest rate and remaining months.
- Enter the one-time prepayment (and any extra monthly amount).
- Choose 'reduce tenure' or 'reduce EMI'.
- Compare interest saved and months saved.
Examples
₹5 lakh prepaid on ₹50 lakh, 8.5%, 240 months left
Input: reduce tenure
Result: Loan ends in 188 months; ≈ ₹17.6 lakh interest saved
Frequently asked questions
Are there prepayment charges on home loans?
RBI rules bar banks and NBFCs from charging foreclosure or part-prepayment penalties on floating-rate loans to individuals for non-business purposes. Fixed-rate loans may carry charges — check your loan agreement.
Reduce EMI or tenure?
Reducing tenure saves more interest; reducing EMI improves monthly cash flow. In this calculator's example the tenure option saves about three times as much.
Learn more
Estimates, not tax or legal advice. Results come from the published rules for the cases this calculator covers; your own circumstances can change them.
Last checked 2026-10-30 by the TakeHomeWorld editors · How we calculate and check rates · Runs entirely in your browser; nothing you type is stored.