Home Loan Prepayment Calculator
గృహ రుణ ముందస్తు చెల్లింపు కాలిక్యులేటర్
Home loan prepayment calculator: the interest a part payment saves, once, every year or every month, and whether to reduce the EMI or the tenure.
హోమ్ లోన్లో కొంత ముందుగా (పార్ట్ పేమెంట్) కడితే ఎంత వడ్డీ ఆదా అవుతుంది: ఈఎంఐ తగ్గించాలా, కాలం తగ్గించాలా?
Your result
Interest you save ఆదా అయ్యే వడ్డీ
7.86 lakh rupees
- Interest without prepayingప్రస్తుత లెక్కన వడ్డీ
- ₹43,31,103
- Interest after prepayingచెల్లించే వడ్డీ
- ₹35,44,881
- Loan ends inరుణం తీరే కాలం
- 17 years 8 months, 2 years 4 months sooner
- Prepaidముందస్తు చెల్లింపు
- ₹2,00,000
| After prepaying | TenureYours | EMI |
|---|---|---|
| Interest saved | ₹7,86,222 | ₹2,16,555 |
| EMI | ₹34,713 | ₹32,977 |
| Loan ends in | 17 years 8 months | 20 years |
Keeping the EMI and cutting the tenure saves ₹5,69,666 more; a lower EMI eases the monthly budget instead. No prepayment charges on floating-rate home loans (RBI); a fixed-rate loan may charge a fee.
Year by year ఏడాదివారీగా
- Left after prepaying
- Extra left without
Use the left and right arrow keys to read each year; the table below lists every value.
Show the year-by-year table
| Year | Left without | Left with | Interest without | Interest with | Prepaid |
|---|---|---|---|---|---|
| 1 | ₹39,20,391 | ₹37,02,713 | ₹3,36,946 | ₹3,19,268 | ₹2,00,000 |
| 2 | ₹38,33,745 | ₹35,96,826 | ₹3,29,909 | ₹3,10,668 | ₹0 |
| 3 | ₹37,39,440 | ₹34,81,580 | ₹3,22,251 | ₹3,01,309 | ₹0 |
| 4 | ₹36,36,800 | ₹33,56,147 | ₹3,13,915 | ₹2,91,122 | ₹0 |
| 5 | ₹35,25,087 | ₹32,19,627 | ₹3,04,842 | ₹2,80,035 | ₹0 |
| 6 | ₹34,03,500 | ₹30,71,040 | ₹2,94,968 | ₹2,67,968 | ₹0 |
| 7 | ₹32,71,166 | ₹29,09,319 | ₹2,84,221 | ₹2,54,834 | ₹0 |
| 8 | ₹31,27,134 | ₹27,33,304 | ₹2,72,524 | ₹2,40,540 | ₹0 |
| 9 | ₹29,70,372 | ₹25,41,730 | ₹2,59,793 | ₹2,24,982 | ₹0 |
| 10 | ₹27,99,753 | ₹23,33,223 | ₹2,45,936 | ₹2,08,048 | ₹0 |
| 11 | ₹26,14,053 | ₹21,06,286 | ₹2,30,855 | ₹1,89,618 | ₹0 |
| 12 | ₹24,11,939 | ₹18,59,290 | ₹2,14,441 | ₹1,69,559 | ₹0 |
| 13 | ₹21,91,959 | ₹15,90,462 | ₹1,96,576 | ₹1,47,727 | ₹0 |
| 14 | ₹19,52,536 | ₹12,97,871 | ₹1,77,132 | ₹1,23,965 | ₹0 |
| 15 | ₹16,91,949 | ₹9,79,419 | ₹1,55,969 | ₹98,102 | ₹0 |
| 16 | ₹14,08,329 | ₹6,32,817 | ₹1,32,935 | ₹69,954 | ₹0 |
| 17 | ₹10,99,640 | ₹2,55,580 | ₹1,07,866 | ₹39,318 | ₹0 |
| 18 | ₹7,63,665 | ₹0 | ₹80,581 | ₹7,864 | ₹0 |
| 19 | ₹3,97,994 | ₹0 | ₹50,883 | ₹0 | ₹0 |
| 20 | ₹0 | ₹0 | ₹18,561 | ₹0 | ₹0 |
Last updated : an example interest rate of 8.5% a year. These are examples: check your lender's current rate and charges before you borrow.
How does a home loan prepayment save interest?
A prepayment (part payment) comes straight off the balance, so every month after it carries less interest. On ₹40 lakh at 8.5% with 20 years left, ₹2 lakh prepaid now saves ₹7,86,222 if you keep the EMI. A home loan charges interest every month on the balance still owed; after a prepayment, the bank asks what you want to reduce:
- The tenure: the EMI stays the same and, with less owed, the loan ends sooner.
- The EMI: the end date stays and the bank works out a new EMI on the smaller balance B over the n EMIs left, at the monthly rate r (yearly rate ÷ 12 ÷ 100):
new EMI = B × r × (1 + r) n ÷ ((1 + r) n − 1)
Example: ₹40,00,000 left at 8.5% with 20 years to go: an EMI of ₹34,713 and ₹43,31,103 of interest still to pay. Prepay ₹2,00,000 now and keep the EMI: the loan ends 2 years 4 months sooner and you save ₹7,86,222. Ask for a lower EMI instead and it becomes ₹32,977, saving ₹2,16,555. Paying ₹5,000 extra with every EMI clears the loan in 14 years 10 months and saves ₹12,98,954.
Reduce EMI or tenure: which is better?
Reducing the tenure saves more: on the example, ₹2 lakh saves ₹7,86,222 with the EMI kept, against ₹2,16,555 with the EMI lowered to ₹32,977. The balance falls faster when the EMI stays, so you pay interest on less for longer. Choose a lower EMI when the monthly budget is tight or your income is uncertain.
Part payment of ₹1 lakh, ₹2 lakh or ₹5 lakh: interest saved
On the same ₹40 lakh loan at 8.5% with 20 years left, one extra EMI a year (₹34,713) ends it 3 years 7 months sooner and saves ₹9,29,766: choose "Yearly" above and type your EMI. Each plan, with the tenure or the EMI reduced:
| Prepay | Keep the EMI: ends sooner by | Interest saved | Or a lower EMI of | Interest saved |
|---|---|---|---|---|
| ₹1 lakh once | 1 year 2 months | ₹4,17,798 | ₹33,845 | ₹1,08,278 |
| ₹2 lakh once | 2 years 4 months | ₹7,86,222 | ₹32,977 | ₹2,16,555 |
| ₹5 lakh once | 5 years 2 months | ₹16,71,631 | ₹30,374 | ₹5,41,388 |
| One extra EMI every year | 3 years 7 months | ₹9,29,766 | ₹34,412 | ₹3,70,328 |
| ₹5,000 extra every month | 5 years 2 months | ₹12,98,954 | – | – |
An extra amount every month only shortens the loan, so it has no lower-EMI figure.
Good to know
- Prepay early: in the first years most of each EMI is interest, so a rupee prepaid then saves the most.
- RBI does not allow prepayment or foreclosure charges on floating-rate home loans taken by individuals (not for a business). A fixed-rate loan may carry a charge: check your loan agreement.
- Reducing the tenure saves more interest; reducing the EMI frees cash every month. If you can afford the EMI, keep it and cut the tenure.
- Keep an emergency fund first: money paid into a loan is hard to get back when you need it.
- Under the old tax regime, interest on a self-occupied home is deductible up to ₹2 lakh a year, so a prepayment trims that deduction; the new regime has no such deduction.
Questions
Prepay the loan or invest the money?
Prepaying a loan at 8.5% is a sure 8.5% return. An investment may earn more, but not for certain, and its returns may be taxed. Many people do a bit of both: prepay something every year, and invest the rest (the SIP calculator shows what a monthly investment grows to).
What is home loan foreclosure?
Paying off the whole balance before the last EMI. The interest still to come is saved, and on a floating-rate home loan to an individual there is no foreclosure charge. Ask the bank for the closure letter and your property papers, and check that the loan shows as closed with the credit bureau.
Does this work for a personal or car loan?
Yes, for any loan repaid in monthly EMIs on a reducing balance: type its balance, rate and years left. Fixed-rate personal and car loans often carry a prepayment charge, so ask the lender first.
How do I prepay?
Through the bank's app or branch, as a part-payment on the loan account. Ask for a revised repayment schedule afterwards, and check that the payment went to principal and that the tenure or EMI changed as you asked.
What next? తర్వాత ఏం చూడాలి
See all calculators →Results are estimates for planning, at the rates you enter. Check exact figures with your bank, fund house or tax adviser before you decide.
