About the Home Loan Prepayment Calculator
Making a lumpsum prepayment on your home loan — from a bonus, maturity payout, or savings — can significantly reduce how long you're paying interest. This calculator keeps your EMI fixed (the common approach most Indian lenders offer) and shows how many months earlier your loan gets paid off, plus how much total interest you save, after a one-time prepayment.
How it works
- Enter your outstanding loan balance, interest rate and remaining tenure.
- Enter a one-time lumpsum prepayment amount.
- The calculator first works out your current fixed EMI for the remaining tenure, then reduces the principal by your prepayment and simulates the loan month by month at the same EMI to see how many months it now takes to pay off, and how much interest you pay along the way.
Assumptions and behaviour
- Assumes your EMI stays the same after the prepayment and the tenure shortens instead — this is the default and most common option lenders offer (the alternative, reducing the EMI and keeping tenure the same, saves less total interest).
- Assumes a fixed interest rate for the remaining tenure.
- Interest saved is calculated by simulating the loan month by month, tracking actual cumulative interest paid, for accuracy rather than a rough approximation.
- Assumes the prepayment is made as a single lumpsum today, with no other future prepayments.
Limitations
- Doesn't account for any prepayment charges some lenders levy on fixed-rate loans (most floating-rate home loans in India have none, per RBI rules).
- Doesn't model future interest rate changes on floating-rate loans.
- For a general EMI calculation without a prepayment, see the Home Loan EMI Calculator.
Privacy
The calculation runs entirely in your browser. Nothing is uploaded or stored.
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