Home Loan Prepayment Calculator
See how much interest you'll save and how much sooner you'll finish your home loan by paying extra toward the principal every month.
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Your result
₹11,73,055.87
Interest saved
AI explanation
Formula
Simulated month-by-month amortization with an extra fixed payment applied to principal every monthWorked example
₹30L outstanding, 8.5%, 20 years, ₹5,000 extra/month
| Field | Value |
|---|---|
| Outstanding loan amount | 3000000 |
| Interest rate | 8.5 |
| Remaining tenure | 240 |
| Extra monthly payment | 5000 |
| New tenure | 164 |
Assumptions
- Assumes the extra payment is made consistently every month for the life of the loan.
- Does not account for any prepayment penalty some lenders charge (though RBI rules prohibit prepayment penalties on floating-rate retail loans).
- Informational only.
Frequently asked questions
How much can I save by prepaying my home loan?
Even a modest extra payment can save substantial interest and years off your loan, since extra amounts go entirely toward principal, reducing the interest charged in every subsequent month.
Are there penalties for prepaying a home loan in India?
RBI rules prohibit prepayment penalties on floating-rate loans to individual borrowers, though fixed-rate loans may still carry a penalty — check your loan agreement.
Is it better to prepay or invest the extra amount?
It depends on your loan rate vs. expected investment returns — prepaying guarantees a return equal to your loan's interest rate, while investing carries market risk but may offer higher expected returns over the long term.
Related calculators
Sources
- Master Circular on customer service and fair practices code — Reserve Bank of India. Effective 01-07-2015, reviewed 13-09-2026.
This calculator provides a general estimate only and does not constitute financial advice. Confirm prepayment terms with your specific lender.
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