Home loan prepayment calculator
Use this tool to estimate how a one-time part-prepayment could reduce your home-loan interest when you keep the EMI broadly unchanged. Actual savings depend on your lender's amortisation schedule, rate changes, prepayment terms and taxes or charges, if any.
Why prepayment can reduce interest
Home-loan interest is calculated on the outstanding principal. Reducing principal earlier can reduce the interest charged over the remaining tenure.
Best way to use the result
- Compare the interest saving with the return you could earn by investing the same cash.
- Keep an emergency fund before making a large prepayment.
- Check your loan agreement for any applicable conditions or charges.
- Ask your lender for a fresh amortisation schedule after the prepayment.
Frequently asked questions
Does prepayment always reduce EMI?Not necessarily. Depending on your lender and instruction, you may reduce EMI, reduce tenure, or choose another permitted structure.
Is the calculator exact?No. It is an estimate based on the inputs and assumes the rate remains constant.
Important: This is an educational calculator, not financial advice. Confirm the actual outstanding balance, rate, prepayment rules and revised amortisation schedule with your lender.