Free Calculator
Home Loan Prepayment Calculator
See how making prepayments can reduce your loan tenure and save you lakhs in interest.
Loan & Prepayment Details
Original or outstanding loan amount
Your current home loan rate
Total loan repayment period
Additional amount to pay
How often you'll make the prepayment
Approximate figures are fine — enter a rough prepayment amount to see the impact, then refine once you know exactly how much you can spare.
Prepayment Impact
Total Interest Saved
₹0
by making prepayments
Monthly EMI
₹0
EMI remains the same, tenure reduces
Original Tenure
0 months
New Tenure
0 months
Tenure Reduced By
0 months
Loan paid off earlier
Get this checked against 50+ banks — free.
No sign-up, no credit check. One call with the numbers.
How it works
How this calculator works
A ₹5 lakh prepayment early in a ₹50 lakh, 20-year loan at 8.5% can shorten the tenure by about 2–3 years and save roughly ₹8–12 lakh in interest.
- 1
Enter current loan details
Input your outstanding loan amount, current interest rate and remaining tenure.
- 2
Enter the prepayment amount
Type in the lump sum or monthly extra amount you plan to pay towards the principal.
- 3
Choose prepayment frequency
Select whether this is a one-time lump sum, a monthly extra payment or an annual prepayment.
- 4
View savings and new schedule
The calculator shows how many months you save, the total interest saved and an updated amortization schedule.
Fair questions
Frequently asked questions
Reducing the tenure saves significantly more interest in the long run. When you reduce EMI, you still pay for the original number of years — you just pay less each month. When you reduce tenure, you exit the loan sooner and stop paying interest entirely. Unless cash flow is very tight, tenure reduction is the better choice.
For home loans with floating interest rates, the Reserve Bank of India (RBI) prohibits banks from charging prepayment penalties. For fixed-rate home loans, lenders may charge a prepayment fee of 2–3% of the prepaid amount. Always confirm with your bank before making a large prepayment.
The savings depend on the outstanding balance, interest rate and remaining tenure. For a ₹50 lakh loan at 9% with 20 years remaining, a ₹5 lakh prepayment today saves approximately ₹9–11 lakh in total interest and cuts the tenure by about 3 years. Use our calculator for the exact figure.
The earlier in the loan tenure you prepay, the greater the savings — because you stop interest from compounding on a larger outstanding balance for longer. Prepayments made in the first 5 years of a 20-year loan save 2–3x more than the same prepayment made in year 15.
This depends on your interest rate and expected investment returns. If your home loan rate is 9% and you expect equity SIP to return 12% CAGR, investing may build more wealth — but with market risk. Prepayment gives a guaranteed risk-free 'return' equal to your loan rate. Our Prepayment vs SIP calculator can model both paths for your specific situation.
Keep exploring
Related calculators
Reviewed by Ekatra's home-loan experts · Calculations are indicative; consult a financial advisor for personalised advice.
Stop overpaying on your home loan
Our advisors audit your loan against 50+ banks and find you a better deal — completely free.
Get Free AuditNo credit check. No sign-up.