[{"data":1,"prerenderedAt":183},["ShallowReactive",2],{"site-nav":3,"guide:reduce-emi-or-tenure":93},{"sections":4,"hubs":65,"guides":81},[5,32,43,58],{"heading":6,"items":7},"Loans & debt · India",[8,12,16,20,24,28],{"path":9,"name":10,"blurb":11},"\u002Fin\u002Fhome-loan-prepayment-calculator","Prepayment calculator","Model lump sums, monthly top-ups and yearly bonuses together, and see what each one removes from your interest bill.",{"path":13,"name":14,"blurb":15},"\u002Fin\u002Fhome-loan-emi-calculator","EMI calculator","Work out the monthly instalment from your balance, rate and remaining tenure — with the full schedule behind it.",{"path":17,"name":18,"blurb":19},"\u002Fin\u002Fhome-loan-amortization-schedule","Amortization schedule","The complete payment-by-payment breakdown — opening balance, interest, principal and closing balance, year by year.",{"path":21,"name":22,"blurb":23},"\u002Fin\u002Fhome-loan-part-payment-calculator","Part payment calculator","One lump sum, one date. See the interest it removes and the months it cuts before you commit the money.",{"path":25,"name":26,"blurb":27},"\u002Fin\u002Freduce-emi-or-tenure-calculator","Reduce EMI or tenure","The one decision that changes your outcome most. Both options costed simultaneously on your own loan.",{"path":29,"name":30,"blurb":31},"\u002Fin\u002Fhome-loan-foreclosure-calculator","Foreclosure calculator","Closing the whole loan early. Weighs the interest saved against every charge, and reports a signed net benefit.",{"heading":33,"items":34},"Loans & debt · United Kingdom",[35,39],{"path":36,"name":37,"blurb":38},"\u002Fuk\u002Fmortgage-overpayment-calculator","Mortgage overpayment","For UK mortgages. Model lump sums and monthly overpayments against your 10% annual allowance and any early repayment charge.",{"path":40,"name":41,"blurb":42},"\u002Fuk\u002Fmortgage-payoff-calculator","Mortgage payoff planner","For UK mortgages. Work backwards from what you can afford each month, or from the year you want to be mortgage-free.",{"heading":44,"items":45},"Savings & investing",[46,50,54],{"path":47,"name":48,"blurb":49},"\u002Fcompound-interest-calculator","Compound interest calculator","Grow a lump sum and regular deposits at any rate and compounding frequency, year by year, in the currency you choose.",{"path":51,"name":52,"blurb":53},"\u002Fcagr-calculator","CAGR calculator","Turn a starting value, an ending value and a holding period into one smoothed annual growth rate.",{"path":55,"name":56,"blurb":57},"\u002Finflation-calculator","Inflation calculator","See what today's prices will cost in future, and what today's money will buy, at any inflation rate.",{"heading":59,"items":60},"Savings & investing · India",[61],{"path":62,"name":63,"blurb":64},"\u002Fin\u002Fsip-calculator","SIP calculator","Project a monthly mutual fund SIP, with an optional yearly step-up, using AMFI's start-of-month convention.",[66,72,76],{"path":67,"name":68,"label":69,"description":70,"updated":71},"\u002Floans","Loans & debt","All loan calculators","Free loan and mortgage calculators that show the full repayment schedule behind every figure: EMI, prepayment, part payment, foreclosure and payoff, for Indian home loans and UK mortgages.","2026-09-10",{"path":73,"name":44,"label":74,"description":75,"updated":71},"\u002Finvesting","All savings and investing calculators","Free savings and investment calculators that show their working: compound interest with regular deposits, CAGR, and inflation and purchasing power in any currency, plus a SIP calculator for Indian mutual funds.",{"path":77,"name":78,"label":79,"description":80,"updated":71},"\u002Fin","India","All India calculators","Free calculators for India, in rupees: home loan EMI, prepayment, part payment, foreclosure and whether to cut your EMI or your tenure, plus a mutual fund SIP calculator — each showing the working behind its figures.",[82,88],{"slug":83,"title":84,"blurb":85,"updated":86,"minutes":87},"reduce-emi-or-tenure","Reduce EMI or reduce tenure? How to decide","The single choice that decides most of what a prepayment is worth.","2026-09-03",6,{"slug":89,"title":90,"blurb":91,"updated":71,"minutes":92},"home-loan-prepayment-charges","Home loan prepayment and foreclosure charges: what you can be charged","What lenders may and may not charge you for paying early, and what changed on 1 January 2026.",5,{"guide":94,"minutes":87,"toc":172,"tools":178,"related":181},{"slug":83,"title":84,"seoTitle":95,"blurb":85,"description":96,"published":86,"updated":86,"author":97,"sources":98,"tools":102,"related":105,"body":106},"Reduce EMI or Tenure After Prepayment? — how to decide","When you prepay a home loan your bank can shrink the EMI or shorten the tenure. One saves far more interest. The other is sometimes still the right answer. Here is how to tell which.","The CutYears team",[99],{"label":100,"url":101,"verified":86},"Reserve Bank of India — Reset of floating interest rate on EMI based personal loans (18 August 2023), which requires lenders to offer borrowers the option to change tenure or EMI on a rate reset","https:\u002F\u002Fwww.rbi.org.in\u002FScripts\u002FBS_CircularIndexDisplay.aspx?Id=12556",[103,104],"in\u002Freduce-emi-or-tenure-calculator","in\u002Fhome-loan-prepayment-calculator",[89],[107,110,114,116,118,123,127,130,132,139,141,144,146,148,151,153,156,158,161,168],{"type":108,"text":109},"p","You have made a prepayment. Your bank now does one of two things with the room it created: it keeps your EMI where it is and ends the loan earlier, or it keeps the end date where it is and recalculates a smaller EMI. It will not do both, and in most cases it will do whichever you did not explicitly ask for. That single instruction is worth more than almost any other decision you will make about the loan.",{"type":111,"id":112,"text":113},"h2","why-tenure-wins","Why shortening the tenure saves more",{"type":108,"text":115},"Interest on a home loan is charged on the balance outstanding, every period, for as long as a balance exists. That last clause is the whole argument. Shortening the tenure deletes periods from the end of the loan — periods that only existed because the debt lasted that long, and every one of which carried an interest charge. Reducing the EMI keeps all of those periods and simply makes each payment smaller. The first eliminates interest. The second redistributes it, and then charges you for the extra time.",{"type":108,"text":117},"The gap between the two is not marginal. Across a spread of ordinary Indian home loans — ₹20 lakh to ₹1.2 crore, 8% to 9.5%, five to twenty-five years remaining — a single lump sum of a tenth of the balance saved between two and three and a half times as much interest under tenure reduction as under EMI reduction. The multiple is largest on long loans with most of their interest still ahead of them, and smallest on short ones. Your own figure depends on your balance, your rate and how far through the loan you are, and you can produce it in a few seconds rather than take ours.",{"type":119,"tone":120,"title":121,"text":122},"callout","info","Where that range comes from","We ran six representative loans through the same engine that powers the calculators, each with one lump sum equal to 10% of the outstanding balance, and compared the interest saved under each strategy. The ratios were 2.1x, 2.5x, 2.9x, 3.2x, 3.2x and 3.5x. This is a description of arithmetic, not a forecast — put your own loan in and read your own number.",{"type":124,"slug":103,"label":125,"note":126},"tool","Cost both options on your own loan","Enter your balance, rate and remaining tenure. Both strategies are computed simultaneously on the same schedule, so the comparison is like for like.",{"type":111,"id":128,"text":129},"when-lower-emi-wins","When taking the lower EMI is genuinely the better call",{"type":108,"text":131},"The case for the lower EMI is a cash-flow case, and dismissing it is a mistake that personal-finance advice makes constantly. Interest saved is not the only thing worth having. A smaller monthly commitment is real protection, and there are situations where it is worth more than the interest it costs you:",{"type":133,"items":134},"list",[135,136,137,138],"You have higher-rate debt. Freed-up monthly cash that clears a credit card at 36% or a personal loan at 14% is worth far more than interest avoided on a home loan at 8%. Pay down the expensive debt first; that is not a close call.","You have no emergency fund. A prepayment is close to irreversible — the money is gone into the property and most lenders offer no way to draw it back. Three to six months of expenses in something liquid comes before any of this.","Your income is variable or uncertain. If you are self-employed, on commission, or in an industry going through a bad year, a lower fixed obligation is insurance. Missing EMIs is a much worse outcome than paying more interest.","You are close to a major planned expense. School fees, a wedding, a medical event you can see coming. Liquidity has a value that does not show up in an interest calculation.",{"type":108,"text":140},"What these have in common is that the monthly difference has a specific, higher-value job to do. If it does not — if the honest answer is that it would be absorbed into ordinary spending — then the interest argument wins and you should shorten the tenure.",{"type":111,"id":142,"text":143},"third-option","The third option most people miss",{"type":108,"text":145},"Take the lower EMI, and keep paying the old one. Some lenders make tenure reduction awkward to request, or apply a fee for reworking the schedule. None of them can stop you from paying more than your instalment. Set up a standing instruction for the original amount, and the difference becomes a recurring prepayment every month. The outcome is close to tenure reduction, you keep the flexibility to stop in a bad month, and you never have to argue with anyone about it.",{"type":108,"text":147},"The stronger version of the same idea is to let the payment grow. Most people's income rises over a twenty-year loan while their EMI stands still, which means the loan gets quietly cheaper in real terms every year and none of that benefit is captured. Raising the payment by a few per cent annually, in step with your salary, compounds into a shorter loan without any single month ever feeling different from the last.",{"type":111,"id":149,"text":150},"rate-resets","The same choice arrives uninvited when your rate changes",{"type":108,"text":152},"On a floating-rate loan, a rate rise poses the identical question in reverse: your lender can raise the EMI and hold the end date, or hold the EMI and extend the tenure. Many Indian lenders default to extending the tenure, because it is the change a borrower is least likely to notice. It is also the expensive one — a rate rise absorbed into the tenure can add years to a loan without a single line of your monthly budget changing.",{"type":119,"tone":120,"title":154,"text":155},"You are entitled to be asked","RBI's August 2023 circular on floating-rate resets requires lenders to give borrowers the option, at the time of reset, to switch between changing the EMI and changing the tenure, and to communicate clearly what is happening. If a reset letter tells you your tenure has been extended without offering you the alternative, you can ask for the alternative.",{"type":108,"text":157},"You can model this directly. Under Advanced options on any of the calculators, add a rate change and then switch \"When the rate changes, my lender\" between holding the tenure and holding the EMI. The schedule is rebuilt both ways, so you can see what a reset actually costs you before you decide how to answer the letter.",{"type":111,"id":159,"text":160},"what-to-do","What to actually do",{"type":133,"ordered":162,"items":163},true,[164,165,166,167],"Decide before you pay. Cost both options on your own numbers first — the decision is much harder to reverse afterwards than to get right now.","Give the instruction in writing. An email or a written request at the branch, naming the outcome you want. Not a phone call.","Check the revised amortisation schedule your lender issues, not the confirmation SMS. The schedule is the only document that shows which of the two things they actually did.","If they did the wrong one, say so immediately. Correcting it in the same month is a correction; correcting it a year later is a request.",{"type":119,"tone":169,"title":170,"text":171},"warn","This is information, not advice","Everything here is general and arithmetic. It does not know your income, your other obligations, your tax position or your plans. For a decision of any size, check the figures against your own statement and talk to someone who can see your whole situation.",[173,174,175,176,177],{"id":112,"text":113},{"id":128,"text":129},{"id":142,"text":143},{"id":149,"text":150},{"id":159,"text":160},[179,180],{"path":25,"name":26,"blurb":27},{"path":9,"name":10,"blurb":11},[182],{"slug":89,"title":90,"blurb":91,"updated":71,"minutes":92},1789052309815]