Loans & interest
Home Loan Prepayment Calculator
గృహ రుణ ముందస్తు చెల్లింపు కాలిక్యులేటర్
Interest saved by prepaying a home loan once, every year or every month, cutting the tenure or the EMI.
Your result ఫలితం
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 |
How a prepayment saves interest
A home loan charges interest every month on the balance still owed. A prepayment comes straight off that balance, so every month after it carries less interest. The bank then 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.
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
Should I reduce the EMI or the tenure?
The tenure, if the EMI is comfortable: the balance falls faster, so you pay interest on less for longer. Choose a lower EMI when the monthly budget is tight or your income is uncertain.
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.
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.
