Home Loan Prepayment Calculator – Calculate Your Savings

What Is Home Loan Prepayment and Why Does It Matter?

Home loan prepayment means paying more than your regular EMI. It could be a one-time lump sum or periodic extra payments. This extra amount directly reduces your principal, which lowers your interest burden and helps you finish your loan faster.

For example, if you got a bonus or some savings, putting that toward your home loan could save you lakhs in interest — but only if you apply it the right way. That’s where the calculator helps.

How Our Home Loan Prepayment Calculator Works

This tool isn’t just about crunching numbers — it’s about making smarter money decisions. Here’s what it helps you with:

• Compare different prepayment strategies (once a year, monthly, one-time)
• See how your loan tenure gets shorter
• Get exact savings in interest
• Understand how your EMI or balance changes

Just enter:

• Your current loan amount
• EMI, interest rate, and tenure
• Your prepayment amount and frequency

And instantly, you’ll see how it impacts your home loan repayment timeline.

Real Example – The Power of Prepayment

Let’s say you took a ₹40 lakh loan at 8.5% interest for 20 years. Your EMI is around ₹34,677.

Now, you decide to make a ₹2 lakh prepayment in year 3.

Without prepayment:

• Total interest: ₹43.2 lakhs
• Loan duration: 20 years

With prepayment:

• Total interest: ~₹38.5 lakhs
• Loan closed ~1.8 years earlier
• You save nearly ₹4.7 lakhs in interest

That’s real money saved — just by using your surplus funds wisely.

Why You Should Consider Prepaying Your Home Loan

• Interest Savings: Every rupee paid early reduces your interest liability.

• Faster Loan Freedom: Prepayment shortens your tenure and gives peace of mind.

When Is It a Good Time to Prepay Your Home Loan?

• You have a bonus, inheritance, or surplus savings

• You’re in the early years of your loan (where most of the EMI goes toward interest)

• Your investment returns are lower than the loan interest rate

• You want to reduce monthly EMIs due to a job change or life change

But remember — if your home loan has low interest and you have higher-return investment options, it may not always make sense to prepay.