Home Loan Prepayment Calculator
Home Loan Prepayment Calculator
See how much interest and tenure you save with a lump sum prepayment.
Frequently Asked Questions
Should I prepay my home loan or invest the money?
If your loan rate is higher than post-tax investment returns, prepayment wins. For most floating rate loans above 8.5%, prepaying reduces total outgo more than comparable fixed-income products.
Is there a penalty for prepaying a home loan in India?
RBI prohibits prepayment penalties on floating rate home loans. Fixed rate loans may carry a penalty of 2–4%. Check your loan agreement for exact terms.
Should I reduce EMI or tenure after prepayment?
Reducing tenure saves more interest overall. Reducing EMI frees up monthly cash flow. Most borrowers benefit more from reducing tenure since the principal clears faster.
Example prepayment calculations
Common scenarios to try in the calculator above.
- → ₹50 lakh loan at 8.5% (20 yr), ₹5 lakh prepaid in year 5 — saves ~₹6.2 lakh interest, reduces tenure by ~2 years
- → ₹30 lakh loan at 9% (15 yr), ₹3 lakh prepaid in year 3 — saves ~₹3.8 lakh interest, closes loan ~18 months early
Results assume the lender reduces tenure while keeping EMI constant after prepayment.