What paying extra saves: interest, months, or a smaller EMI
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 23 Oct 2026.A prepayment or part payment removes interest for the whole remaining term. On ₹40 lakh at 8.5% with 20 years left the EMI is ₹34,713; a ₹5 lakh part payment with the EMI kept saves ₹16.59 lakh of interest and 62 months, against ₹5.39 lakh if the EMI is cut instead.
Rates and rules read from the sources listed on this page (the earliest on 23 Oct 2026); they may have changed since.
Set the Amount you still owe, the Interest rate and the Years left.
Enter a One-off amount and the month you pay it, or an amount Extra every month.
Choose Finish sooner or Lower the EMI under "What the bank does with it".
Read the Interest you would save and the new end date or EMI, then press Share result.
This home loan prepayment calculator shows what paying extra actually saves. Enter what you still owe, your rate and the months left, then add a one-off amount, a monthly top-up, or both. You get the interest saved, the months saved, the new EMI if you cut that instead, and a full schedule.
Under the Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025, a lender may not charge a prepayment or foreclosure fee on a floating rate, non-business loan to an individual, part or full; on a fixed rate loan the lender's own policy decides. Those Directions cover loans sanctioned or renewed from 1 January 2026, so check the sanction letter on an older loan. This page assumes no fee and a rate that does not move.
Sources: Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025, rbi.org.in. Reviewed on 18 October 2026. Estimates for information only, not financial advice.
Savings depend on the amount, the rate and how early you pay. On 40,00,000 at 8.5% with 20 years left, a single 5,00,000 prepayment made now with the EMI kept the same saves about 16,59,000 of interest and ends the loan 62 months early. Enter your own outstanding balance for your figure.
Shortening the tenure saves far more interest, because the balance falls faster for the rest of the loan. Lowering the EMI frees cash every month but you pay for just as long. The same 5,00,000 prepayment on the example above saves about 16,59,000 by shortening the loan and about 5,39,000 by cutting the EMI.
Under the Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025, a lender may not charge a prepayment or foreclosure fee on a floating rate loan taken by an individual for a purpose other than business, part or full; on a fixed rate loan the lender's own policy decides. Those Directions apply to loans sanctioned or renewed from 1 January 2026, so check the sanction letter on an older loan.
As early as you can. A home loan charges interest on the balance, so a rupee paid in year one stops earning the bank interest for the whole remaining term, while the same rupee in year fifteen stops very little. The early EMIs are also almost all interest, so prepaying then moves the most.
Prepaying gives you a certain return equal to your loan rate, with no tax on it. Investing gives you an uncertain return that is taxed. This page shows the interest saved for every rupee you put in, which is the number to compare against what you expect an investment to return after tax. Also weigh the deduction you may lose on home loan interest.
No. It assumes your rate stays where it is, there are no fees or prepayment charges, and the money is applied in the month you choose. Floating rates move, and some banks apply a part payment only from the next instalment date, so treat the figures as close estimates rather than a statement from your bank.
Rates and rules change; check the source before you rely on a figure.
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