Home Loan Prepayment Calculator
Interest and years saved by a lump-sum prepayment, extra monthly payments or yearly EMI increases.
Updated 27 September 2026 · 17 lenders trackedAbout this calculator
Prepaying reduces the principal on which interest is charged, so every rupee paid early saves interest for the rest of the loan. Floating-rate home loans to individuals can be prepaid in part or full at any time without charges. Reducing tenure saves more interest than reducing EMI.
Home Loan Prepayment Calculator
What prepayment saves
| Strategy | Loan closes in | Total interest | Interest saved |
|---|---|---|---|
| No prepayment | 20 yrs 0 mo | ₹54,13,879 | — |
| ₹5 lakh lump sum at end of year 1 | 16 yrs 0 mo | ₹37,97,570 | ₹16,16,308 |
| One extra EMI a year (EMI/12 added monthly) | 16 yrs 7 mo | ₹43,24,512 | ₹10,89,367 |
| EMI raised 5% every year | 12 yrs 3 mo | ₹34,62,167 | ₹19,51,712 |
₹50 lakh at 8.5% for 20 years (EMI ₹43,391); prepayments reduce tenure with EMI unchanged.
Reduce tenure or reduce EMI?
| Option | Effect | How |
|---|---|---|
| Keep EMI, cut tenure | Maximum interest saving | Default at most lenders |
| Cut EMI, keep tenure | Lower saving, better monthly cash flow | Ask the lender in writing |
RBI prepayment rules
| Situation | Rule |
|---|---|
| Floating-rate loans to individuals (non-business) | No prepayment / foreclosure charge — any lender, part or full, from any source of funds |
| Loans sanctioned or renewed from 1 Jan 2026 | RBI (Pre-payment Charges on Loans) Directions, 2025 also bar charges on floating-rate business loans to individuals and MSEs at most banks and large NBFCs; no minimum lock-in |
| Fixed-rate loans | Lender may charge as per the sanction letter and Key Facts Statement |
| Disclosure | Any charge must be shown in the sanction letter, loan agreement and KFS; waived charges cannot be levied later |
Frequently asked questions
Should I prepay or invest?
Compare your loan rate after tax with the post-tax return you expect. Under the new tax regime there is no deduction on a self-occupied home loan, so prepayment is effectively a risk-free return at your loan rate.
Is there a minimum prepayment amount?
Some lenders ask for a minimum (often one EMI) for part-prepayment; there is no charge on floating-rate loans.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.