The calculator
Build your plan on the left. Watch it pay off on the right.
No Calculate button — every number updates as you type, and each figure traces back to a row in your schedule.
Your loan
What you owe today
Your prepayments
Lump sums or top-ups
Choose the outcome
Shorter loan or lower EMI
Results, live
No Calculate button
Your loan
What you owe today
Computed from the numbers above.
Your prepayment plan
2 active · ₹17.00 L prepaid over the loan
on 05 Feb 27
On its own: saves ₹14.48 L and 4y 1m off your loan.
from 05 Nov 26
On its own: saves ₹19.77 L and 7y 6m off your loan.
What should prepaying do?
The single most important choice here
Advanced optionsPayment frequency, rate changes, fees — optional
Payment mechanics
Interest rate changes
The EMI is recomputed over the tenure remaining — tenure held, EMI moves. Check your bank's reset letter: on a floating-rate home loan many Indian lenders do the opposite.
Tax relief
Fees & charges
Usually zero — RBI bars these on floating-rate loans to individuals. Include any GST your lender adds.
Net benefit after fees
₹26.49 L
No fees entered, so the whole saving is yours.
Where you stand after
Side by side
Your loan with your plan, and without it
Two futures for the same loan. The right-hand column is the one you're building.
Interest you keep
₹26.49 L
56% less interest than doing nothing
Time you get back
9y 5m
earlier than Sep 2046
Every figure here is the last row of the matching schedule below — nothing is estimated separately.
Visual proof
Your balance reaches zero 9y 5m sooner
The shaded gap is what you no longer owe. At its widest it is ₹30.06 L.
Where each year's instalments go
Interest outweighs principal until 2031 — which is why a prepayment made before then removes the most.
What waiting costs you
What ₹4.50 L removes from your interest bill, by the date you pay it.
Paid now it removes ₹14.92 L. Wait twelve months and it removes ₹13.62 L — ₹1.30 L less for the same money.
Full detail
Every payment, to the rupee
127 payments across 12 years, every rupee accounted for
12 years match
| # | Date | Opening | EMI | Interest | Principal | Prepayment | Closing |
|---|---|---|---|---|---|---|---|
| ₹45,00,000 | ₹1,35,029 | ₹92,591 | ₹42,438 | ₹20,000 | ₹44,57,562 | ||
| ₹44,57,562 | ₹10,30,115 | ₹3,27,619 | ₹7,02,496 | ₹5,70,000 | ₹37,55,066 | ||
| ₹37,55,066 | ₹5,80,115 | ₹2,99,333 | ₹2,80,782 | ₹1,20,000 | ₹34,74,284 | ||
| ₹34,74,284 | ₹5,80,115 | ₹2,75,273 | ₹3,04,843 | ₹1,20,000 | ₹31,69,441 | ||
| ₹31,69,441 | ₹5,80,115 | ₹2,49,150 | ₹3,30,965 | ₹1,20,000 | ₹28,38,476 | ||
| ₹28,38,476 | ₹5,80,115 | ₹2,20,789 | ₹3,59,327 | ₹1,20,000 | ₹24,79,149 | ||
| ₹24,79,149 | ₹5,80,115 | ₹1,89,997 | ₹3,90,118 | ₹1,20,000 | ₹20,89,031 | ||
| ₹20,89,031 | ₹5,80,115 | ₹1,56,567 | ₹4,23,548 | ₹1,20,000 | ₹16,65,483 | ||
| ₹16,65,483 | ₹5,80,115 | ₹1,20,273 | ₹4,59,843 | ₹1,20,000 | ₹12,05,641 | ||
| ₹12,05,641 | ₹5,80,115 | ₹80,868 | ₹4,99,248 | ₹1,20,000 | ₹7,06,393 | ||
| ₹7,06,393 | ₹5,80,115 | ₹38,086 | ₹5,42,029 | ₹1,20,000 | ₹1,64,364 | ||
| ₹1,64,364 | ₹1,66,927 | ₹2,564 | ₹1,64,364 | ₹30,000 | ₹0 | ||
Compare strategies
Same money, very different outcomes
Ranked by interest saved against your loan. Tap one to make it your plan.
One bonus a year
₹10,000 every December
Interest saved
₹20.55 L
- Time saved
- 7y 9m
- Extra paid
- ₹15.11 L
- Debt-free
- Dec 2038
- Saved per ₹1
- ₹1
A little every month
₹10,000 on top of every EMI
Interest saved
₹19.94 L
- Time saved
- 7y 6m
- Extra paid
- ₹14.90 L
- Debt-free
- Mar 2039
- Saved per ₹1
- ₹1
Lump sum, straight away
₹4.50 L at your next payment date
Interest saved
₹14.92 L
- Time saved
- 4y 2m
- Extra paid
- ₹4.50 L
- Debt-free
- Jul 2042
- Saved per ₹1
- ₹3
The same lump sum, a year later
₹4.50 L after twelve more payments
Interest saved
₹13.61 L
- Time saved
- 3y 11m
- Extra paid
- ₹4.50 L
- Debt-free
- Oct 2042
- Saved per ₹1
- ₹3
Planner
Work backwards from what you can spare
Tell us what's realistic each month and we'll rank the ways to use it — then solve for the date you want to be free.
₹15,000
To hit 2036
About ₹16,000 extra a month.
Found by running your full schedule repeatedly and narrowing in — the same maths as the table, not a shortcut.
Ranked · what ₹15,000 a month can do
Monthly top-up
with every EMI
Saved
₹24.49 L
Time
9y 5m
Extra paid
₹18.90 L
Quarterly top-up
every three months
Saved
₹24.28 L
Time
9y 4m
Extra paid
₹18.90 L
Yearly lump sum
saved up, paid once a year
Saved
₹23.34 L
Time
9y
Extra paid
₹18.07 L
Step up the EMI 10% a year
No lump sums — the EMI itself grows
Saved
₹22.57 L
Time
10y 4m
Extra paid
₹24.97 L
Ranked by interest saved for the same outlay. Paying earlier always beats paying later — that's where the interest lives.
How we calculate
No black box. Six rules produce every number here.
The same six a lender applies to your account each month. Read them, check them against your statement, then trust the schedule.
Interest accrues on your opening balance each period. On the default settings — monthly payments, monthly compounding — that is your annual rate divided by twelve, which is standard reducing balance. Change the payment frequency and the rate is converted so your effective annual rate stays the same.
A prepayment goes entirely to principal. Nothing is applied to interest, which is why the next period costs you less.
No period ever pays more than the balance plus its interest, so the loan settles at exactly zero and can never go negative.
On a rate change the EMI is recomputed over the tenure remaining — tenure held, EMI moves.
Both futures are run through the same engine on the same rate path, so the comparison is fair.
Every headline figure is the last row of its schedule. Nothing on this page is estimated a second way.
Questions people ask
How much should I prepay to make a real difference?
There is no threshold — prepayment savings are close to linear in the amount and strongly non-linear in the date. A small amount paid early routinely beats a larger amount paid later. Rather than waiting to accumulate a round figure, model both on this page: the Scenarios section ranks the same money paid in different shapes.
Is a lump sum better early or late?
Early, and by a wide margin. The same money prepaid at the start of a loan removes interest for every period that remains after it. Paid in year two of a twenty-year loan it removes eighteen years of interest on that amount; paid in year fifteen it removes five. The waiting-cost chart above prices twelve months of delay on your own loan rather than in the abstract.
Should I prepay or invest the money instead?
Prepaying earns you a guaranteed, tax-free return equal to your loan rate. An investment might earn more, but the return is uncertain and usually taxed. The honest comparison is your post-tax loan rate against a post-tax expected return, adjusted for the fact that one is certain and the other is not — and if you claim tax relief on the interest, your effective loan rate is lower than the headline rate. Switch on tax relief under Advanced options to see your own effective rate. To size the investing side, the SIP calculator projects a monthly investment at whatever return you assume.
What should I enter as the outstanding balance?
What you still owe today, from your latest statement — not the amount you originally borrowed. This is the single most common mistake, and it changes every number on the page.
Will my bank charge me to prepay?
On a floating-rate home loan to an individual, almost certainly not. Longstanding RBI guidance already barred foreclosure and prepayment charges on floating-rate home loans to individual borrowers, and the Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025 widened that for loans sanctioned or renewed on or after 1 January 2026 — for individuals borrowing for purposes other than business, irrespective of the source of the funds, with or without a co-obligant, and with no minimum lock-in. Fixed-rate loans are treated differently and may still carry a charge, calculated on the amount you prepay. Check your sanction letter and your lender's current schedule of charges, then enter anything that applies — including any GST the lender adds to it — under Advanced options, and the net benefit updates. Verified against the 2025 Directions on 10 September 2026.
Why does my bank's number differ slightly?
This calculator uses the standard monthly reducing balance — interest at your annual rate divided by twelve, on the balance at the start of each month — and a prepayment takes effect from your next scheduled payment. Some lenders compute interest on a daily reducing balance with monthly rests, and credit a prepayment on the day you make it. Either way you will save a little more than shown, and the difference is small: at most about one month of interest on the amount prepaid.
Where does my data go?
Nowhere. Every calculation runs in your browser. There is no account, no tracking of your loan values, and no server round-trip to compute any of this.
Why you can check this one
Independent
Not a lender, not a broker, not affiliated with anyone who is. Nothing here is ranked by what it pays us, because nothing pays us. There are no ads and no lead generation.
Checkable
Every figure is the last row of a schedule you can expand, read and download. The rules the engine follows — the rate conversion, the rounding points, how a prepayment is timed — are published in full, along with every place we knowingly differ from a lender.
Honest about limits
It models the loan, not your life. It does not know your lender's exact day-count conventions, your emergency fund or your tax position — and it will tell you when prepayment costs more than it saves rather than showing you a zero.
Nothing you type is sent anywhere. No account, no tracking of your loan details, nothing stored on a server. How that works.
Read the full methodology — the exact rate conversion, where rounding is applied, how we time a prepayment, and every choice we make differently from a lender, with the reasoning for each.
In plain terms
What a prepayment actually does to your loan
Every rupee you prepay goes to principal, and principal is what interest is charged on.
Your EMI is split every month between interest and principal. The interest half is calculated on whatever you owe at the start of that month, so it is not a fixed cost — it is a rent on the outstanding balance. A prepayment is different from an EMI: none of it is applied to interest. It goes straight against the balance, which means the very next month's interest is calculated on a smaller number, and so is every month after that.
That compounding is why the date of a prepayment matters more than most people expect. The same ₹4.5 lakh removes interest for every period that remains after it is paid. Paid in year two of a twenty-year loan, it removes eighteen years of interest on that amount. Paid in year fifteen, it removes five. The money is identical; the outcome is not. The waiting-cost chart on this page prices that delay on your own loan rather than in the abstract.
The second thing that decides your outcome is what your bank does with the freed-up capacity. It can keep your EMI where it is and end the loan sooner, or it can recalculate a smaller EMI over the original tenure. These are very different financial events and most lenders default to whichever you do not ask for. Both are costed here, side by side, on your own numbers — you do not have to guess which one you are being given.
How it's calculated
The working behind the number
This home loan prepayment calculator runs your loan month by month twice, on the same rate path: once as contracted, and once with every lump sum, monthly top-up and yearly prepayment you add. Each prepayment goes wholly to principal, so every later month's interest is charged on a smaller balance. The interest saved is the difference between the two schedules' interest columns, and the time saved is the difference in their length.
Formula
Interestₖ = Balanceₖ₋₁ × r · Principalₖ = EMI − Interestₖ + Prepaymentₖ · Balanceₖ = Balanceₖ₋₁ − Principalₖ
- Balanceₖ₋₁
- What you owe before payment k. The first is the outstanding balance you enter.
- r
- The monthly rate: your annual rate ÷ 12.
- EMI
- The monthly instalment, from EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), or the figure you type.
- Prepaymentₖ
- Every prepayment falling due at payment k — never more than is left to repay.
- k
- The payment number, from 1 until the balance reaches zero.
Assumptions and limits
- Interest is charged monthly on the reducing balance, at the annual rate ÷ 12.
- A prepayment takes effect from the next scheduled EMI on or after its date. A lender that credits it on the day saves you slightly more.
- Interest, EMI, principal and balance are each rounded to the paisa every month.
- Prepayment charges and fees are paid out of pocket, never added to the balance.
- A rate change applies from the first EMI on or after its effective date, to both schedules alike.
- Tax relief on the interest is left out unless you switch it on under Advanced options.
A worked example
Take ₹45,00,000 outstanding at 8.25% a year, with 20 years (240 monthly payments) of tenure left, and a ₹4,50,000 prepayment on 15 Jan 2027 and ₹10,000 extra every month from Nov 2026.
- Monthly rate r = 8.25% ÷ 12 = 0.6875%.
- Without prepayments the loan ends in Sep 2046 after ₹47.02 L of interest.
- Each prepayment goes straight to principal, so every later month charges interest on a smaller balance.
- With them it ends in Apr 2037, after ₹20.53 L of interest.
You keep ₹26.49 L of interest and finish 113 payments sooner, for ₹17.00 L paid early.
Computed by the calculator on this page, from the figures it opens with.
Sources
- RBI (Pre-payment Charges on Loans) Directions, 2025 (RBI/2025-26/64, 2 July 2025): no pre-payment charge on floating-rate loans to individuals for non-business purposes sanctioned or renewed on or after 1 January 2026; fixed-rate charges are computed on the amount prepaid — checked 10 September 2026
- RBI, Key Facts Statement for Loans & Advances (RBI/2024-25/18, 15 April 2024): for retail and MSME term loans sanctioned on or after 1 October 2024 the KFS must include the amortisation schedule and an APR computation sheet — checked 10 September 2026
By The CutYears team · Last reviewed 10 September 2026 · Full methodology