HomeLoans & EMI
Loan prepayment calculator
See how much interest and time an extra payment saves.
Quick answer
Add an extra monthly amount or a one-time lump sum to see how many months and how much interest you save. ₹5,000 extra a month on a ₹10,00,000, 9%, 20-year loan clears it in about 8 years 7 months instead of 20.
Read the guide: How EMI is calculated, with a worked example
Interest saved
₹7,21,616
- Time saved
- 11 years 5 months
- New loan length
- 8 years 7 months
- Interest without prepaying
- ₹11,59,342
- Interest with prepaying
- ₹4,37,726
The EMI stays the same; the extra money goes straight to principal, so the loan ends sooner.
- Principal
- Interest
Year-by-year table
| Year | Paid | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | ₹1,67,967 | ₹81,265 | ₹86,702 | ₹9,18,735 |
| 2 | ₹1,67,967 | ₹88,888 | ₹79,079 | ₹8,29,847 |
| 3 | ₹1,67,967 | ₹97,227 | ₹70,741 | ₹7,32,620 |
| 4 | ₹1,67,967 | ₹1,06,347 | ₹61,620 | ₹6,26,273 |
| 5 | ₹1,67,967 | ₹1,16,323 | ₹51,644 | ₹5,09,950 |
| 6 | ₹1,67,967 | ₹1,27,235 | ₹40,732 | ₹3,82,715 |
| 7 | ₹1,67,967 | ₹1,39,171 | ₹28,796 | ₹2,43,544 |
| 8 | ₹1,67,967 | ₹1,52,226 | ₹15,741 | ₹91,318 |
| 9 | ₹93,989 | ₹91,318 | ₹2,671 | ₹0 |
How it works
Every extra rupee you pay goes against the principal. A smaller principal means less interest next month, which compounds in your favour.
This calculator keeps your EMI unchanged and shortens the loan. Some banks instead lower the EMI after a part-payment; ask yours which it does.
The earlier in the loan you prepay, the more you save, because the balance carries the most interest then.
The formula
- Each month: interest = balance × rate ÷ 12
- Principal paid = EMI − interest + extra payment
- The loan ends when the balance reaches 0; interest saved = interest without prepaying − interest with prepaying
A worked example
A ₹10,00,000 loan at 9% for 20 years with ₹5,000 extra every month: the loan ends after 103 months (8 years 7 months) instead of 240, and you save about ₹7.2 lakh in interest.
Common questions
Is it better to prepay or invest the money?
If your loan rate is higher than what you can safely earn after tax, prepaying wins. If investments reliably beat the loan rate, investing may be better. It also depends on your comfort with risk.
Do banks charge for prepayment?
Floating-rate home loans to individuals usually have none. Fixed-rate and personal loans often do, so check the agreement.
Should I shorten the tenure or lower the EMI?
Shortening the tenure saves more interest. Lowering the EMI eases your monthly budget. This calculator shows the shorter-tenure result.
Can I combine a monthly extra and a lump sum?
Yes. Fill both boxes and the calculator applies both.