How much interest could an extra home loan payment save?
Estimate how voluntary part-prepayments can change your home loan tenure while keeping EMI unchanged. Compare extra monthly repayments, a lump-sum contribution and the combined plan.
Prepayment scenarios
Simplified EMI/tenure illustration, not a bank quote. RBI Pre-payment Charges on Loans Directions, 2025 apply to loans sanctioned/renewed from 1 Jan 2026 and restrict charges for specified floating-rate loans. Do not infer that all historic, fixed-rate or business loans are exempt. This calculator assumes unchanged nominal rate and EMI, no GST on applicable fees, and no lender-specific penalty formulas or rate resets.
Compare four loan plans
Compare four loan plans
Interest: ₹50,37,281
Interest: ₹37,69,655
Interest: ₹46,96,669
Interest: ₹35,55,197
Amortisation trajectory
| EMI month | Interest | EMI paid | Outstanding principal |
|---|---|---|---|
| 1 | ₹33,333 | ₹46,822 | ₹49,86,511 |
| 2 | ₹33,243 | ₹46,822 | ₹49,72,933 |
| 3 | ₹33,153 | ₹46,822 | ₹49,59,264 |
| 4 | ₹33,062 | ₹46,822 | ₹49,45,503 |
| 5 | ₹32,970 | ₹46,822 | ₹49,31,651 |
| 6 | ₹32,878 | ₹46,822 | ₹49,17,707 |
| 7 | ₹32,785 | ₹46,822 | ₹49,03,670 |
| 8 | ₹32,691 | ₹46,822 | ₹48,89,539 |
| 9 | ₹32,597 | ₹46,822 | ₹48,75,314 |
| 10 | ₹32,502 | ₹46,822 | ₹48,60,994 |
| 11 | ₹32,407 | ₹46,822 | ₹48,46,579 |
| 12 | ₹32,311 | ₹1,46,822 | ₹47,32,067 |
| 181 | ₹180 | ₹27,237 | ₹0 |
How to calculate Indian home loan prepayment savings
- 01
Enter your CURRENT principal outstanding and the number of EMIs still due. Enter a nominal annual rate and review the calculated EMI; if this differs from your actual lender EMI, the comparison will differ.
- 02
Enter a monthly additional principal payment or a one-time prepayment, specifying the month it will be made. The calculation assumes EMI stays constant, so the term shortens.
- 03
For loans sanctioned or renewed on or after 1 January 2026, the RBI's 2025 Pre-payment Charges Directions generally prohibit charges on floating-rate loans to individuals for non-business purposes, irrespective of funding source. This does not automatically settle every older, fixed-rate or commercial loan case.
- 04
Enter only an applicable fee actually quoted in your loan documents. Compare the scenario with the lender's amortisation schedule and consider rate resets, loan type, tax deductions and available cash before prepaying.
What the EMI projection assumes
Simplified EMI/tenure illustration, not a bank quote. RBI Pre-payment Charges on Loans Directions, 2025 apply to loans sanctioned/renewed from 1 Jan 2026 and restrict charges for specified floating-rate loans. Do not infer that all historic, fixed-rate or business loans are exempt. This calculator assumes unchanged nominal rate and EMI, no GST on applicable fees, and no lender-specific penalty formulas or rate resets.
Frequently asked questions
Is there a foreclosure charge on floating-rate individual home loans?
RBI's 2025 Directions apply to loans sanctioned or renewed from 1 January 2026 and restrict prepayment charges for individual non-business floating-rate loans. Loan type and effective date still matter.
Does paying extra always reduce EMI?
Not in this illustration. It assumes your lender keeps EMI unchanged and reduces the remaining term. Some lenders instead recalculate EMI and preserve tenure.
Does this calculate tax benefits or floating-rate resets?
No. Tax deductions and RBI reset rules are separate. The interest rate stays fixed throughout this scenario, even if your actual loan floats.
Reserve Bank of India — Pre-payment Charges on Loans Directions, 2025
Simplified EMI/tenure illustration, not a bank quote. RBI Pre-payment Charges on Loans Directions, 2025 apply to loans sanctioned/renewed from 1 Jan 2026 and restrict charges for specified floating-rate loans. Do not infer that all historic, fixed-rate or business loans are exempt. This calculator assumes unchanged nominal rate and EMI, no GST on applicable fees, and no lender-specific penalty formulas or rate resets.