Home Loan Prepayment Calculator
Real EstateWhat prepaying a home loan saves in interest, and how many years it removes.
Runs entirely in your browser — nothing is uploaded
Features
- Extra every month, or a single lump sum in any month.
- Interest saved and months removed.
- Frames the saving as the guaranteed return it is.
- Results update as you type, with no button to press.
How to use the Home Loan Prepayment Calculator
- 1Enter the outstanding loan, rate and remaining tenure.
- 2Choose extra monthly payments or a lump sum.
- 3Compare the interest saved against what investing the money would earn.
Frequently asked questions
Are there charges for prepaying a home loan?
On floating-rate home loans to individual borrowers, the RBI prohibits prepayment and foreclosure charges entirely. Fixed-rate loans may still carry them, so check the sanction letter.
Should I prepay or invest instead?
Prepaying an 8.5% loan is a guaranteed 8.5% tax-free return. To beat it, an investment must reliably return more than that after tax — plausible over long horizons in equity, not guaranteed. Many people split the difference and do both.
Does prepaying lose me the tax benefit?
Partly, under the old regime — less interest paid means less to claim under section 24(b), capped at ₹2 lakh anyway. The interest saved almost always exceeds the tax benefit forgone, but run both numbers if you are near the cap.
When does prepaying stop being worth it?
Late in the term, when most of each EMI is already principal and there is little future interest left to avoid. In the last few years of a loan, the same money invested usually does better.