Home Loan Prepayment Calculator
Compare a one-time prepayment under tenure reduction and EMI reduction to see interest saved, EMI saved and loan-closing impact.
Assumptions and limitations
- The outstanding balance is calculated after the specified number of normal EMIs.
- Tenure reduction keeps EMI unchanged; EMI reduction keeps remaining tenure unchanged.
- Prepayment charges, taxes and floating-rate changes are not included.
Illustrative projections only
SmartFintool provides mathematical calculations and educational information. It does not provide personalised investment advice. Mutual fund returns are not guaranteed and tax rules can change.
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₹50.00 Lakh
₹5.00 Lakh
Interest saved
₹15.83 Lakh
4y 0m earlier closure
Original EMI
₹43,391
New EMI
₹43,391
New tenure
16y 0m
Before vs after prepayment
- Original interest
- ₹54.14 Lakh
- New interest
- ₹38.31 Lakh
How prepayment is modelled
The calculator computes the outstanding principal after the chosen number of EMIs, reduces it by the lump-sum prepayment, and then either recalculates EMI for the same remaining tenure or solves for the shorter tenure at the same EMI.
Frequently Asked Questions
Is tenure reduction better than EMI reduction?
Usually yes for interest saving. Keeping the EMI high after prepayment repays principal faster, while reducing EMI mainly improves monthly cash flow.
Does every bank allow lump-sum prepayment?
Rules vary by lender, loan type and whether the rate is fixed or floating. Check prepayment charges, part-payment limits and processing rules before paying.