How does the Home Loan Prepayment calculate projections?

The Live Trend Go Home Loan Prepayment computes mathematical projections directly in your web browser using standard regulatory and banking algorithms without server latency.

Is the Home Loan Prepayment free and private?

Yes, the Home Loan Prepayment is 100% free with unlimited calculations. Your financial scenario inputs are processed locally in your browser memory and never transmitted or stored on our servers.

Are the formulas used in the Home Loan Prepayment updated for current regulations?

Yes. All calculation engines are audited quarterly against official Reserve Bank of India (RBI), Central Board of Direct Taxes (CBDT), and AMFI regulatory frameworks.

Banking & LoansHigh ROI

Home Loan Prepayment

Calculate total interest saved and tenure reduction through extra monthly or yearly loan prepayments.

Runs entirely in your browser
No sign-up, nothing stored
Formula explained below

Loan details

Enter what you still owe today.

Your loan

Outstanding loan principal

₹

₹1L₹2Cr

Interest rate (p.a.)

6%16%

Remaining tenure

yrs

1 yrs30 yrs

Prepayment plan

Extra payments go straight to principal; your EMI stays the same.

Extra payment each month

₹

₹1KPaid with every EMI₹50K

Total interest saved

₹12,98,954

Finish the loan in 14.8 years instead of 20 — 5.2 years earlier. Your regular EMI stays at ₹34,713.

Regular monthly EMI

₹34,713

Interest, no prepayment

₹43,31,103

Interest, with prepayment

₹30,32,149

Outstanding balance

What you still owe at the end of each year, with and without extra payments.

Without prepayment
With prepayment

Prepaying cuts 30% of your total interest

₹5,000 a month on top of your EMI saves ₹12,98,954 and 62 EMIs. Every extra payment reduces the balance that interest is charged on for all the remaining months, so payments made early in the loan save the most.

Interest cut

30%

₹12,98,954 saved

Tenure reduced

5.2 yrs

62 fewer EMIs

New tenure

14.8 yrs

178 months instead of 240

Revised total outflow

₹70,32,149

Principal plus revised interest

Total interest paid

Over the life of the loan, with and without your extra payments.

Interest paid each year

Prepaying shrinks the yearly interest bill and ends it years earlier.

Without prepayment
With prepayment

Year-by-year comparison

Loan balance and interest paid each year, with and without prepayment.

Year	Balance · no prepayment	Balance · with prepayment	Interest · no prepayment	Interest · with prepayment
Year 1	₹39,20,391	₹38,57,997	₹3,36,946	₹3,34,552
Year 2	₹38,33,745	₹37,03,443	₹3,29,909	₹3,22,001
Year 3	₹37,39,440	₹35,35,227	₹3,22,251	₹3,08,339
Year 4	₹36,36,800	₹33,52,143	₹3,13,915	₹2,93,471
Year 5	₹35,25,087	₹31,52,875	₹3,04,842	₹2,77,288
Year 6	₹34,03,500	₹29,35,994	₹2,94,968	₹2,59,674
Year 7	₹32,71,166	₹26,99,943	₹2,84,221	₹2,40,504
Year 8	₹31,27,134	₹24,43,027	₹2,72,524	₹2,19,639
Year 9	₹29,70,372	₹21,63,402	₹2,59,793	₹1,96,930
Year 10	₹27,99,753	₹18,59,061	₹2,45,936	₹1,72,214
Year 11	₹26,14,053	₹15,27,819	₹2,30,855	₹1,45,313
Year 12	₹24,11,939	₹11,67,297	₹2,14,441	₹1,16,034
Year 13	₹21,91,959	₹7,74,910	₹1,96,576	₹84,167
Year 14	₹19,52,536	₹3,47,838	₹1,77,132	₹49,484
Year 15	₹16,91,949	Loan closed	₹1,55,969	₹12,538
Year 16	₹14,08,329	Loan closed	₹1,32,935	₹0
Year 17	₹10,99,640	Loan closed	₹1,07,866	₹0
Year 18	₹7,63,665	Loan closed	₹80,581	₹0
Year 19	₹3,97,994	Loan closed	₹50,883	₹0
Year 20	₹0	Loan closed	₹18,561	₹0

20 yearsBalances at the end of each year; interest paid during the year

Why prepaying your home loan saves so much

In the early years of a 20- or 30-year home loan, 70–80% of each EMI goes towards interest and only a small part reduces the principal. When you prepay, 100% of the extra amount comes straight off the outstanding principal.

EMI = P × r × (1 + r)ⁿ ÷ [ (1 + r)ⁿ − 1 ]

P: Outstanding loan principal
r: Monthly rate = annual rate ÷ 12 ÷ 100
n: Remaining monthly instalments

Smart prepayment strategies

One extra EMI every year. Paying 13 EMIs instead of 12 each year cuts a 20-year, ₹40 lakh loan at 8.5% to under 17 years and saves over ₹8 lakh in interest.
Prepay early in the tenure. Prepayments made in the first 5 to 7 years save the most interest, because that is when the principal is largest.

Should I reduce my EMI or my tenure after a prepayment?

This calculator keeps your EMI unchanged and lets the tenure shrink, which saves the most interest. Most lenders also let you keep the tenure and lower the EMI instead, which helps cash flow but saves less.

Are there charges for prepaying?

Under RBI rules, lenders cannot charge prepayment penalties on floating-rate home loans taken by individuals. Fixed-rate loans may carry a fee, so check your loan agreement.

Should I prepay or invest the money instead?

It depends on your loan rate, the return you expect and how much you value being debt-free. Compare both paths with the prepay loan vs. invest in SIP calculator.

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