Home Loan Prepayment Calculator
What a lumpsum prepayment saves — interest avoided, tenure cut, and the prepay-vs-invest verdict.
Formula
Disclaimer: Indicative payoff math; lender computations (daily interest, fees) vary slightly. Not financial advice.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need home loan prepayment calculator results fast? Skip the spreadsheet and get a clear, defensible answer in one step — free, private and instant, recalculating live as you change any input.
About Home Loan Prepayment Calculator
A lumpsum prepayment with the EMI held constant is quiet financial violence in your favor: the default ₹5 lakh against a ₹40 lakh balance at 8.5% removes roughly 3+ years of EMIs and saves several times the headline interest a naive calculation suggests — because every prepaid rupee stops compounding against you for the loan's entire remaining life. Keep the EMI unchanged; letting the bank reduce your EMI instead burns most of the benefit (our EMI-vs-tenure tool prices that choice). Timing is everything in amortization: prepayments in years 1-8 of a 20-year loan attack the interest-heavy phase (the first third of a loan's life pays mostly interest); the same ₹5 lakh in year 16 saves little because those EMIs were mostly principal anyway. Floating-rate home loans to individuals carry NO prepayment penalty by RBI rule — the cleanest debt-reduction channel in Indian finance, ignored mainly because banks don't advertise it. The prepay-versus-invest debate has an honest frame: prepaying at 8.5% is a RISK-FREE, post-tax 8.5% return (interest avoided) — equity's expected 11-12% beats it on average but with risk; FDs' post-tax ~5% loses outright. The mature middle: max the emergency fund first, keep 80C/24(b) tax-shield math in view (old-regime borrowers effectively pay ~6% net on the sheltered slice), then split surpluses — half prepayment, half SIP — and let temperament, not spreadsheets alone, set the ratio. The borrower who sleeps well prepays the next bonus too.
How to use Home Loan Prepayment Calculator
- 1Enter Outstanding loan, Interest rate (%), Current EMI, Lumpsum prepayment into the Home Loan Prepayment Calculator.
- 2The result is computed automatically using Same EMI on a smaller balance finishes years earlier — the saving is every EMI you no longer pay, minus the prepaid principal — there is no button to press; it updates live as you type.
- 3Change any input to model a different scenario, then use “Copy result link” to share the exact numbers.
Why use Home Loan Prepayment Calculator?
- ✓Computes home loan prepayment calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter are never uploaded or stored
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
₹5 lakh prepay karne se kitna bachta hai?+
Defaults par (₹40L @ 8.5%, ₹36k EMI): ~38-40 mahine ki EMIs hat jaati hain — ₹13-14 lakh ki bachat us ₹5 lakh ke against. Wahi prepayment loan ke aakhri saalon me sirf ₹1-1.5 lakh bachata. Niyam: jitna pehle, utna powerful — amortization ka front-loaded interest hi asli dushman/dost hai.
EMI kam karwaun ya tenure?+
Tenure — lagbhag hamesha: same prepayment par tenure-cut ka interest-saving EMI-cut se 2-4× hota hai (EMI wahi rehne par extra cash har mahine principal kha raha hota hai). EMI tabhi ghatao jab cash-flow genuinely tight ho. Bank default me EMI-reduction offer karta hai (unke liye behtar hai) — letter me 'tenure reduction' explicitly likhwao.
Prepay karoon ya SIP me daaloon?+
Risk-adjusted frame: prepayment = guaranteed 8.5% (post-tax, kyunki interest bachat par tax nahi); equity SIP = expected 11-12% with -20% wale saal. 24(b)/80C shelter le rahe ho to loan ka net cost ~6-6.5% hai — wahan SIP ka case strong. Nahi le rahe (new regime) to 8.5% guaranteed bahut tagda benchmark hai. 50-50 split + saal me ek review zyadatar logon ka sahi jawab hai.
Kya prepayment par koi charge lagta hai?+
Floating-rate home loan (individual borrower) par NAHI — RBI ne foreclosure/part-prepayment charges ban kiye hain. Fixed-rate par 2-4% lag sakta hai (sanction letter dekho). Process: netbanking/app se 'part prepayment' option, ya branch me letter ke saath; 'apply to principal, reduce tenure' likhwana mat bhoolna. Saal me 1-2 baar se zyada bhi kar sakte ho — koi limit nahi.
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