What is Home Loan Prepayment Calculator?
Home Loan Prepayment Calculator helps you estimate the effect of a home-loan prepayment on EMI or remaining tenure.
The main result is net interest saving after charges, with a breakdown of new monthly EMI, remaining payments and new total interest. The formula, example and assumptions below explain how to interpret it.
How to use Home Loan Prepayment Calculator
Use the example to get familiar with the form, then enter your own figures. Any rates in the example are illustrative. Check the field labels and units before calculating.
- Gather current outstanding principal (₹), current annual rate (%), remaining months, immediate part-prepayment (₹), prepayment charges (₹) and after prepayment. Use values from the same situation or reporting period.
- Replace the example current outstanding principal with your own value, then complete the other fields. Check the displayed units and each selected option.
- Select Calculate and read net interest saving after charges with its result breakdown. Change one input and calculate again to compare a second scenario. Reset restores the original example.
- Enter current outstanding principal in ₹, at least 0. Decimals are accepted.
- Enter current annual rate in %, at least 0 and at most 100. Decimals are accepted.
- Enter remaining months, at least 1 and at most 600. Use a whole number.
- Enter immediate part-prepayment in ₹, at least 0. Decimals are accepted.
- Enter prepayment charges in ₹, at least 0. Decimals are accepted.
- Choose after prepayment from Keep EMI, reduce tenure and Keep tenure, reduce EMI.
Home Loan Prepayment Calculator: a worked example
With the inputs below, the result is ₹2,32,056.3 (net interest saving after charges). Follow the example, then replace these illustrative values with your own.
| Input or output | Example value |
|---|---|
| Current outstanding principal (₹) | ₹10,00,000 |
| Current annual rate (%) | 9 % |
| Remaining months | 120 |
| Immediate part-prepayment (₹) | ₹2,00,000 |
| Prepayment charges (₹) | ₹0 |
| After prepayment | Keep EMI, reduce tenure |
| Net interest saving after charges | ₹2,32,056.3 |
| New monthly EMI | ₹12,667.58 |
| Remaining payments | 86 months |
| New total interest | ₹2,88,052.99 |
| Immediate cash needed | ₹2,00,000 |
Understanding the Home Loan Prepayment result
Read net interest saving after charges alongside new monthly EMI, remaining payments and new total interest. These describe different parts of the same calculation.
Displayed results use a readable number of decimal places. When checking a result by hand, keep extra precision until the last step. To compare scenarios, change one input at a time and keep the others fixed.
- Example New monthly EMI: ₹12,667.58
- Example Remaining payments: 86 months
- Example New total interest: ₹2,88,052.99
- Example Immediate cash needed: ₹2,00,000
Home Loan Prepayment Calculator: assumptions and common mistakes
A useful estimate starts with the right inputs. Check the following assumptions and limits before applying the result to your situation.
- Monthly reducing-balance estimate with a constant rate and end-of-month payments. Actual lender rounding, payment dates, rate resets, fees and taxes can change the schedule.
- Compare offers over the same tenure. A lower EMI can come from a longer loan, which may increase total interest.
For wider guidance, visit Reserve Bank of India. The formula and scope of this specific tool are stated on this page.
