Home › Calculators › Prepayment calculator
Home Loan Prepayment Calculator
Paying a little extra can take years off your home loan. Try a monthly top-up, a yearly bonus or a one-time lump sum and see the interest you save.
Prepayment options (optional): pay extra to finish sooner
How much prepayment saves on a ₹50 lakh loan
₹50 lakh at 8.5% for 20 years, keeping the same EMI. Without prepayment you pay ₹54,13,879 in interest.
| Prepayment | Loan ends after | Time saved | Interest saved |
|---|---|---|---|
| ₹2,000 extra every month | 17 yrs 11 mo | 2 yrs 1 mo | ₹6,69,292 |
| ₹5,000 extra every month | 15 yrs 7 mo | 4 yrs 5 mo | ₹13,89,250 |
| ₹10,000 extra every month | 12 yrs 11 mo | 7 yrs 1 mo | ₹21,78,721 |
| ₹50,000 extra every year | 16 yrs 4 mo | 3 yrs 8 mo | ₹11,48,164 |
| ₹1,00,000 extra every year | 14 yrs 0 mo | 6 yrs 0 mo | ₹18,55,389 |
| ₹5,00,000 once, after 2 years | 16 yrs 3 mo | 3 yrs 9 mo | ₹14,57,301 |
Home loan calculators
Home loan EMI calculatorHome loan eligibility calculatorHome loan prepayment calculatorHome loan balance transfer calculatorHome loan amortization schedule
Frequently asked questions
Is it better to reduce the EMI or the tenure after a prepayment?
Keeping the same EMI and shortening the tenure usually saves more interest, because the loan is cleared sooner. Reducing the EMI eases your monthly budget but saves less.
Do banks charge for prepaying a home loan?
Under RBI rules, banks generally cannot charge prepayment or foreclosure penalties on floating-rate home loans taken by individuals. Fixed-rate loans can carry a charge, so check your loan agreement.
When does prepayment save the most?
In the early years, when most of each EMI is interest. The same extra payment made in year 2 saves far more than one made in year 15.
How much does ₹5,000 extra a month save on a ₹50 lakh loan?
At 8.5% over 20 years, paying ₹5,000 more each month clears the loan 4 yrs 5 mo early and saves about ₹13,89,250 in interest.