Home Loan EMI with Prepayment
Fixed EMI, floating or fixed rate modeled as constant here. After an optional “quiet period,” apply prepayments that shrink principal while EMI stays the same — tenure shortens until closure.
Inputs
No prepayment before this many EMIs (e.g. 12 = from month 13).
Results
Monthly EMI
Without prepayment
Total interest₹0
Tenure0 mo
With prepayment
Total interest₹0
Actual tenure0 mo
Interest saved: ₹0
Tenure reduced by: 0 months
With prepayment frequency set to None, both columns match a standard reducing-balance loan (no extra principal payments). For the same EMI with a full amortization table, use the EMI calculator.
Year-wise summary (with prepayment)
| Year | Principal paid | Interest paid | Prepay | End balance |
|---|
Prepaying a home loan — what to know
When prepayment helps: If your home loan costs more in interest than you reliably earn on alternate investments after tax, directing spare cash to principal can improve net worth. High EMIs also reduce monthly stress — but keep an emergency fund before aggressive prepayment. This calculator assumes the bank keeps your EMI constant and uses prepayments to shorten tenure, which is a common option; some lenders instead lower EMI — read your sanction letter.
Tax angle (India, illustrative): Section 24(b) allows deduction on home loan interest within limits for self-occupied property; prepaying reduces future interest and therefore future deductions — that is not necessarily bad (you pay less real interest), but optimizers sometimes model the trade-off. Principal repayment may interact with Section 80C eligibility on principal repayment within overall caps. Consult a CA for your exact structure.
Full vs partial prepayment: Full closure ends the loan; partial prepayments chip away principal. Some banks charge prepayment penalties on fixed-rate loans — factor that in. Floating-rate retail home loans often have fewer restrictions for individuals, but verify.
For a simpler EMI without prepayment paths, use the standard EMI calculator. For investment return on idle cash before prepaying, try the lumpsum calculator.
International readers: “Mortgage” is the usual term outside India for a home loan. Our Mortgage calculator uses US conventions (PMI, property tax %, annual insurance). For rupee prepayment modeling and Indian loan norms, this page is the closer match.
FAQ
Why does tenure jump oddly?
Large prepayments can remove years in one shot; rounding and minimum balance thresholds can affect the last month.
Is EMI recalculated?
We keep EMI fixed after initial amortization — a simplification.