What is the Home Loan Prepayment Calculator? A prepayment calculator shows how paying extra towards a home loan, once or every month, cuts the interest you pay and either shortens the loan or lowers the EMI.
How to use the Home Loan Prepayment Calculator
- Enter the loan amount, interest rate and tenure.
- Add a one-time prepayment and the year you will make it.
- Optionally add an extra amount every month.
- Choose to keep the EMI and finish sooner, or keep the end date and lower the EMI.
Frequently asked questions
Is it better to reduce EMI or tenure?
Reducing tenure saves more interest because the full EMI keeps paying down principal. Reduce the EMI only if you need the monthly cash flow.
Do banks charge for prepaying a home loan?
Not on floating-rate home loans for individual borrowers. Fixed-rate loans may carry a charge.
Results are estimates based on the inputs you enter, not guaranteed returns or financial advice.