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See how a one-time or yearly prepayment cuts your interest and tenure — and whether to reduce your EMI or finish early.
See how prepaying your home loan cuts interest and years — compare reducing your EMI vs reducing your tenure.
You save ₹14.04 L and finish 4 years 4 months earlier.
Reduce tenure (keep EMI)
Reduce EMI (keep tenure)
Your EMI drops by ₹4,527 and you save ₹4.78 L.
Since 1 Jan 2026, RBI bars prepayment and foreclosure penalties on individual floating-rate home loans.
Estimates only, using the reducing-balance method. Actual savings depend on your bank's terms, rate resets, and prepayment timing. Confirm with your lender.
Reducing the tenure (keeping the same EMI) almost always saves far more interest than reducing the EMI, because the principal is repaid faster and interest is charged on the outstanding balance. Reducing the EMI helps if you need lower monthly cash outflow. This calculator shows both so you can compare the exact interest saved.
Since 1 January 2026, the RBI bars prepayment and foreclosure penalties on floating-rate home loans taken by individuals for non-business purposes, including when repaid via a balance transfer. Fixed-rate loans may still attract charges. Confirm your loan type with your lender.
It depends on your outstanding amount, rate, remaining tenure, and how early you prepay. On a typical ₹50 lakh, 20-year loan, even a modest yearly prepayment can save several lakhs in interest and shorten the loan by years. Enter your numbers above to see your exact saving.