CalcHome Loan Prepayment Interest Savings Calculator
Calculate how much interest you can save and how many years you can reduce your home loan tenure by making lumpsum prepayments in India.
Total Interest Saved
Formula & Calculation
Interest Saved = Total Interest (Standard) - Total Interest (Prepaid)- Standard Interest: Interest remaining if the original loan term is served without prepayment.
- Prepaid Interest: Interest calculated on reduced principal after one-time prepayment is paid.
How to Use
- Input the outstanding loan amount, interest rate, and original tenure.
- Enter the number of EMIs already paid (months served).
- Specify your lumpsum prepayment amount.
- Check the total interest saved and tenure reduction in years.
Frequently Asked Questions
What is home loan prepayment?
Prepayment refers to paying off a part of your outstanding loan amount before the completion of the tenure, which reduces the principal balance.
Should I reduce EMI or tenure when making a prepayment?
Reducing the loan tenure saves significantly more interest compared to reducing the EMI, making tenure reduction the recommended option.
Are there prepayment charges on home loans in India?
According to RBI guidelines, banks cannot charge prepayment penalties on floating interest rate home loans for individual borrowers.
How does prepayment save interest?
Because the prepayment amount directly reduces your outstanding principal, the interest calculations for all subsequent months are computed on a lower base, saving money.
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