Home loan prepayment calculator – saved interest

This calculator helps agents and buyers see the impact of a one‑time or regular prepayment on a home loan. By entering ₹25,00,000, 9%, 20 years and the extra amount, you instantly get the new loan length and the interest you will save. It is useful when a client has cash on hand and wants to know how fast the loan can be cleared without changing the monthly EMI. The results are computed locally on the device, so no data leaves the phone.

How to use the calculator

Enter the loan amount (₹25,00,000), annual interest rate (9%) and original tenure (20 years).
Fill in the prepayment amount – either a one‑time sum (₹2,00,000) or a monthly extra.
The calculator shows the unchanged EMI (₹22,493), the reduced months (195 months), how many months are saved (45 months) and the total interest saved (₹8,14,455).
Review the numbers with the client. Prepayment charges, if your lender has any, are not included.
To send the result, tap Copy link to this result and share the link.

Open the calculator: Home loan prepayment calculator

Worked example

Input	Value
Loan amount	₹25,00,000
Interest rate (per year)	9%
Tenure	20 years
One-time prepayment now	₹2,00,000

Result	Value
EMI (unchanged)	₹22,493
Interest saved	₹8,14,455
Loan ends sooner by	45 months
New tenure	195 months

Example inputs from a published worked example; results computed by the same code the calculator uses.

How it is calculated

Each month: interest = balance × r; balance = balance − (EMI − interest) − prepayment
r = yearly rate ÷ 12 ÷ 100. The EMI stays the same; every rupee you prepay goes straight to the principal, so the loan ends sooner.

The monthly interest is calculated as: interest = current balance × r, where r = yearly rate ÷ 12 ÷ 100. Each month the balance is reduced by the part of EMI that goes to principal (EMI – interest) and by any prepayment amount. The EMI itself does not change; only the principal shrinks faster, so the number of payments drops. The total interest saved is the sum of original interest minus the interest computed with the reduced balance each month.

Assumptions

The interest rate stays the same for the whole loan (no floating-rate changes).
Prepayments reduce the tenure, not the EMI, and go fully to principal.
Monthly extras are paid with every EMI; yearly extras after every 12th EMI.
Prepayment charges, fees and tax effects are not included — ask your lender and your CA.

When it helps

Use this tool when a buyer:

Receives a windfall (sale of another property, inheritance) and wants to know the payoff benefit.
Considers increasing monthly payments to finish the loan early.
Wants to compare different prepayment sizes before talking to the lender. The calculator does not cover variable‑rate changes, tax effects, or lender‑specific prepayment penalties. For those, ask the lender or a CA.

Frequently asked questions

What happens to my EMI after I make a prepayment?

The EMI remains unchanged; the prepayment amount is applied directly to the principal, which shortens the loan term.

How does the calculator show interest saved?

It recomputes monthly interest on the reduced balance and totals the difference from the original schedule, giving ₹8,14,455.

Are prepayment fees included in the result?

No. Any charges from the lender are not part of the calculation – ask your lender for those details.

Can I enter a monthly extra payment instead of a one‑time amount?

Yes. The tool treats a regular extra payment the same way, reducing principal each month and lowering the total tenure.

Does the tool assume the interest rate stays the same?

Yes. The rate you enter is used for the whole loan period.

Sources

For estimation only — verify with a professional. Rates and rules vary by state and change over time; last verified on 2026-10-09. This is not legal, tax or financial advice.

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