🏠 Home Loan Prepayment & Pre-Close Calculator

Calculate your interest savings and tenure or EMI reduction by making lump-sum or recurring early prepayments.

🏦 Home Loan Details
Initial home loan principal (e.g. ₹50 Lakhs)
Annual interest rate (reducing balance)
Original tenure of the loan
Completed installments before starting prepayments (default: 2 Years)
💰 Early Prepayment Settings
Optional one-time prepayment (e.g. ₹5 Lakhs)
Month number in which lump-sum is paid (e.g. Month 25 is start of Year 3)
Extra amount added to standard EMI every month (optional)
Extra amount paid once every 12 months (optional)
💡 Keep your monthly EMI unchanged to pay off the loan faster and save maximum interest.
🎉 Repayment Savings Summary
Total Interest Saved
₹0
Tenure Shortened By
0 months
New Reduced EMI
₹0
Original Total Interest
₹0
New Total Interest
₹0
By prepaying early, you will save ₹0 and close your loan 0 months early!
📈 Principal Balance Reduction Curve
Original Path Prepayment Path
📅 Year-on-Year Outstanding Balance Comparison
Year Original Principal Prepayment Principal Yearly Prepayments Orig Interest Prepay Interest Cum. Interest Saved
❓ Frequently Asked Questions

Are there any charges for prepaying a Home Loan in India?

Under reserve bank guidelines (RBI rules), Indian commercial banks and housing finance corporations (HFCs) are strictly prohibited from charging any foreclosure or prepayment penalties on floating-rate home loans. However, fixed-rate home loans may still attract foreclosure fees of 2% to 4% if closed early using external funds.

Should I choose "Reduce Tenure" or "Reduce EMI"?

Reducing tenure is mathematically superior as it saves significantly more interest. Outstanding principal gets paid down faster, meaning less interest compounds over time. **Reducing EMI** is beneficial if you are facing monthly cashflow constraints and need to immediately lower your mandatory monthly payment burden. You can calculate your monthly EMI using our Loan EMI Calculator.

When is the best time to prepay on a home loan?

It is highly advantageous to prepay in the initial years of the loan term. Because home loan amortization is structured with heavily front-loaded interest payments, prepaying early directly strips away principal when interest compounding is at its highest, delivering the maximum possible interest savings.

How does a recurring prepayment compare to a lump-sum?

While a single large lump-sum instantly cuts down the principal, consistent recurring prepayments (such as adding ₹5,000 every month or ₹1,00,000 every year) compound into massive savings over 15 to 20 years. Doing a combination of both is the most effective way to eliminate debt rapidly.