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Mortgage Prepayment Calculator

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See how much interest you save and how many months you cut off your home loan by paying extra — monthly or as a one-time lump sum — with a before-and-after comparison, instantly in your browser.

Interest Saved
Before vs After
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1. Loan & prepayment

Prepayment type

Informational only — not financial advice. Assumes the EMI stays the same (tenure-reduction strategy) and ignores prepayment charges, which some lenders apply.

2. Your savings

Interest saved
₹13,89,250
Loan paid off 4y 6m sooner
Current EMI
₹43,391
Months saved
54
Interest (before)
₹54,13,879
Interest (after)
₹40,24,629
Interest without prepayment₹54,13,879
Interest with prepayment₹40,24,629

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  style="border:none; border-radius:12px;"
  loading="lazy"
  title="Mortgage Prepayment Calculator">
</iframe>

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How to Use

  1. 1 Enter your outstanding loan amount, rate, and tenure
  2. 2 Choose a monthly extra payment or a one-time lump sum
  3. 3 Enter the prepayment amount
  4. 4 For a lump sum, set the month it's applied
  5. 5 Read the interest saved and months reduced
  6. 6 Compare interest before and after in the chart

Features

  • Interest saved and tenure reduced vs the original loan
  • Monthly extra-payment or one-time lump-sum modes
  • Keeps the EMI fixed (the reduce-tenure strategy)
  • Before-and-after interest comparison bars
  • Accurate month-by-month amortisation simulation
  • Full prepayment scheduling and export with Pro

Why it Matters

Prepaying a home loan is one of the highest-return, lowest-risk uses of spare cash because every rupee of prepayment avoids years of compound interest. But the size of the benefit is hard to picture — a modest extra payment each month can cut years off the loan and save lakhs in interest. Seeing the exact saving helps you decide whether to prepay, invest, or split the difference.

★★★★★

Use Cases

Home Loan Borrowers

See what an extra EMI payment really saves you

Bonus & Windfalls

Test how a one-time lump sum shortens the loan

Prepay vs Invest

Weigh interest saved against expected returns

Payoff Planning

Set a target payoff date and work backwards

What this tool does

The Mortgage Prepayment Calculator shows how much interest you save and how many months you shave off a home loan by paying extra — either a fixed amount every month or a one-time lump sum. It compares your loan with and without the prepayment so the benefit is concrete.

How it works

The tool simulates the loan’s amortisation schedule month by month, twice: once for the original loan and once with your prepayments added. It keeps the EMI fixed (the reduce-tenure strategy that saves the most interest) and reports the difference in total interest and number of months.

A note on accuracy

This is an informational estimate, not financial advice. It assumes a constant rate and ignores any prepayment charges your lender may apply. Confirm the exact figures and any fees with your lender before acting.

Free vs Pro

The free calculator models one prepayment and stores nothing. A proposed Prepayment Pro would let you schedule multiple prepayments over time, save and compare strategies, and export a full payoff schedule — while the core calculator stays free forever.

Privacy

Everything runs locally in your browser. Nothing you enter is uploaded, logged, or stored.

Frequently Asked Questions

How does prepayment save interest?
Interest each month is charged on the outstanding balance. When you pay extra, the balance drops faster, so less interest accrues in every following month. Because the EMI stays the same, more of each future payment goes to principal — which is why a small monthly extra can shorten the loan by years and save a large amount of interest.
What's the difference between reducing tenure and reducing EMI?
After a prepayment your lender can either keep the EMI the same and shorten the tenure (you finish sooner), or keep the tenure the same and lower the EMI. Reducing tenure saves far more interest. This calculator models the reduce-tenure strategy, which most borrowers choose for maximum savings.
Should I prepay or invest the money instead?
Compare the loan's interest rate to the after-tax return you expect from investing. Prepaying is a guaranteed, risk-free 'return' equal to your loan rate. If your expected investment return is comfortably higher and you're comfortable with the risk, investing may win; if not, prepaying is the safer choice. Use this tool alongside an investment calculator to compare.
Are there prepayment charges?
Floating-rate home loans to individuals usually have no prepayment penalty in India, but fixed-rate loans and some lenders may charge a fee. This calculator ignores charges, so check your loan agreement and subtract any fee from the interest saved.
Can I model a full prepayment plan?
The free tool models one prepayment (recurring or one-time) and stores nothing. A proposed Prepayment Pro would let you schedule multiple prepayments over time, save and compare strategies, and export a month-by-month payoff schedule. The core calculator stays free.
Is my data stored anywhere?
No. Every calculation runs locally in your browser. The numbers you enter are never uploaded, logged, or stored.
📖

Want to understand the math?

Browse all guides →
Mortgage Prepayment
mortgage

Mortgage Prepayment: How Extra Payments Save Interest

Learn how prepaying a home loan saves interest, the difference between reducing tenure and reducing EMI, when to prepay versus invest, and how to model the savings.

24 Jun 2026

5 min read

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