Reva Money · Calculators · Loan prepayment calculator
See how much interest and how many years you save by paying a little extra on your home loan every year.
| Loan amount | ₹50.00 L |
|---|---|
| Interest rate a year | 8.5% |
| Tenure | 20 years |
| Extra paid every year | ₹1.00 L |
| Interest you save | ₹18.55 L |
| Loan closes in | 14 years |
| Years saved | 6 years |
| Interest without prepaying | ₹54.14 L |
| Interest with prepaying | ₹35.58 L |
A prepayment cuts the principal, so every later EMI carries less interest. The calculator keeps the EMI the same and lets the loan end sooner.
Banks don’t charge for prepaying a floating-rate home loan taken by an individual (RBI rule); check your loan’s terms for anything else.
Formula: Each month: Balance = Balance × (1 + i) − EMI; at the end of each year, Balance = Balance − Extra. The loan ends when the balance reaches zero.
At 8.5% for 20 years, about ₹18.55 L in interest, and the loan ends 6 years sooner.
Keeping the EMI and cutting the tenure saves more interest. Lowering the EMI gives more room in your monthly budget.
Illustrative only. These figures assume steady returns, which real investments don’t give. They are not investment advice.