# Home Loan Prepayment Calculator: Cut Tenure or EMI > Home loan prepayment calculator: add a lump sum or extra each month and see the interest you save, how much sooner the loan ends, or your new lower EMI. Source: https://trykosh.com/tools/loan-prepayment-calculator Free tool - Loans and credit cards # Home loan prepayment calculator See what a bonus, an inheritance or a small extra each month does to your home loan. Compare reducing the tenure with reducing the EMI. Rules checked 25 October 2026Free - no sign-upRuns in your browser Interest you save INR 9,94,307 on a remaining interest bill of INR 30,90,125 Loan ends**3 years 1 month sooner** Current EMI**INR 39,390** Total prepaid**INR 5,00,000** Interest without prepaying INR 30,90,125 Interest with prepaying INR 20,95,818 Net saving INR 9,94,307 Tenure now 15 years Tenure after prepaying 11 years 11 months Balance left at the end of each year Without prepaying With prepaying Year 1 INR 38,62,032 INR 33,40,402 Year 2 INR 37,11,869 INR 31,44,132 Year 3 INR 35,48,433 INR 29,30,513 Year 4 INR 33,70,551 INR 26,98,013 Year 5 INR 31,76,946 INR 24,44,961 Year 6 INR 29,66,228 INR 21,69,542 Year 7 INR 27,36,884 INR 18,69,778 Year 8 INR 24,87,268 INR 15,43,518 Year 9 INR 22,15,588 INR 11,88,420 Year 10 INR 19,19,895 INR 8,01,934 Year 11 INR 15,98,065 INR 3,81,286 Year 12 INR 12,47,788 INR 0 Year 13 INR 8,66,549 INR 0 Year 14 INR 4,51,613 INR 0 Year 15 INR 0 INR 0 Keeping the EMI and cutting the tenure saves the most interest, because every rupee prepaid stops earning interest for the rest of the loan. ## Upload your statement and Kosh does this for you. Upload a bank or card statement and Kosh finds every EMI and card charge, then builds the fastest way out of debt that still fits your month. [Start free](/signup?via=tool-loan-prepayment-calculator) ## How the home loan prepayment calculator works A prepayment goes straight to principal. Every rupee you prepay stops earning interest for the rest of the loan, which is why prepaying early in a long loan saves far more than the amount prepaid would earn in most safe investments. Enter your outstanding balance, rate and remaining tenure, then a one-time prepayment and the month you'll make it, an extra amount every month, or both. The calculator runs the loan month by month with and without the prepayments and compares the total interest. After a prepayment the lender will ask whether to keep the EMI and shorten the tenure, or keep the end date and lower the EMI. Keeping the EMI saves the most interest. Lowering the EMI frees up cash flow, which may suit you if money is tight. Switch the option to see both. RBI does not allow banks and NBFCs to charge prepayment or foreclosure penalties on floating-rate loans to individuals for non-business purposes, which covers most home loans. Fixed-rate loans can carry a charge; enter it to see the saving net of the penalty and its GST. Saving = interest on the original schedule − interest with prepayments − prepayment charge Reduce tenure EMI stays the same, the loan ends sooner Reduce EMI after the lump sum, EMI = recalculated on the new balance over the remaining months ## Worked example: Karan puts his bonus into the loan Karan has INR 32 lakh left on his home loan at 8.75% with 18 years to go, and an EMI of INR 29,468. He prepays his INR 3 lakh bonus in month 3 and adds INR 5,000 to every EMI. Keeping the EMI unchanged, his loan ends 7 years sooner and he saves INR 15,38,489 in interest. Had he chosen a lower EMI instead, it would fall to INR 26,550 and the saving would be INR 12,45,403. Interest you save INR 15,38,489 on a remaining interest bill of INR 31,65,194 Loan ends**7 years sooner** Current EMI**INR 29,468** Total prepaid**INR 9,60,000** Interest without prepaying INR 31,65,194 Interest with prepaying INR 16,26,706 Net saving INR 15,38,489 Tenure now 18 years Tenure after prepaying 11 years Keeping the EMI and cutting the tenure saves the most interest, because every rupee prepaid stops earning interest for the rest of the loan. [Load this example into the calculator ->](?balance=3200000&rate=8.75&years=18&lump=300000&lumpMonth=3&extra=5000#calculator) ## Good to know - Prepay early in the loan. The same INR 3 lakh saves far more in year 2 than in year 15, because more years of interest are avoided. - If you file under the old regime and your interest is already below INR 2 lakh, the 24(b) deduction you lose by prepaying is small. If your interest is well above INR 2 lakh, prepaying costs you no tax benefit at all on the excess. - Keep an emergency fund of at least six months of expenses before prepaying. A home loan can't easily be re-borrowed once paid down. - Ask the lender for a revised repayment schedule and confirmation of whether the tenure or the EMI was reduced after every prepayment. ## Frequently asked questions Is it better to reduce EMI or tenure after prepaying? Reducing the tenure saves more interest because you keep paying the higher EMI and the loan ends sooner. Reducing the EMI lowers your monthly outgo and saves less. If cash flow is comfortable, keep the EMI and cut the tenure. Is there a penalty for prepaying a home loan? Not on floating-rate home loans taken by individuals: RBI bars lenders from charging prepayment or foreclosure penalties on them. Fixed-rate loans may carry a charge, usually a small percentage of the amount prepaid, plus GST. Should I prepay my home loan or invest? Prepaying gives a guaranteed, tax-free return equal to your loan rate. Investing may earn more over long periods but with risk. Many people split surplus money between the two, and prepay more when the loan rate is high. How often can I prepay a home loan? Most lenders allow part-prepayments as often as you like on floating-rate loans, sometimes with a minimum amount such as one EMI. Check your loan agreement or ask the branch. Does prepaying a home loan reduce my tax benefit? Only under the old regime, and only if your yearly interest falls below the INR 2 lakh section 24(b) limit. Principal prepaid counts towards 80C within the INR 1.5 lakh cap in the year you pay it. ## Sources and assumptions - [Reserve Bank of India](https://www.rbi.org.in/) - [Income Tax Department](https://www.incometax.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.