EMI Calculator with Prepayment — Save Interest in India

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💡

Prepaying even ₹1 lakh in the early years of a home loan can save ₹3–5 lakhs in total interest — because prepayment directly reduces the principal on which future interest is charged. This calculator shows exactly how much you save with any prepayment amount at any point in your loan. Compare "reduce EMI" vs "reduce tenure" options and find the strategy that saves you the most.

₹10.0 L
₹1L₹1Cr
8.5%
1%24%
1 yr30 yr
Years
📌 Prepayment Impact on ₹40L Home Loan
₹40L · 8.5% · 20yr · Prepay ₹2L after Year 3
Interest Saved ₹4.82L · Tenure Reduced by 22 Months · New Payoff in 17yr 10mo
Monthly EMI
₹8,678
for 240 months at 8.5% p.a.
₹10,00,000Principal
₹10,82,776Total Interest
₹20,82,776Total Payment
52%Interest Ratio
Principal 48%
Interest 52%
₹8,678Monthly EMI
₹26,035Quarterly EMI
₹52,069Half-Yearly EMI
₹1,04,139Yearly EMI
₹10,82,776Total Interest
₹20,82,776Total Payment

💡 Best Tenure Suggestion

Compare how tenure affects your EMI and total interest

TenureMonthly EMITotal InterestTotal PaymentVerdict
5 yr₹20,517₹2,30,992₹12,30,992+₹8,118/mo
10 yr₹12,399₹4,87,828₹14,87,828✅ Optimal
15 yr₹9,847₹7,72,531₹17,72,531₹-2,551/mo
20 yr₹8,678₹10,82,776₹20,82,776₹-3,720/mo
25 yr₹8,052₹14,15,681₹24,15,681₹-4,346/mo
30 yr₹7,689₹17,68,089₹27,68,089₹-4,709/mo

🔄 Prepayment Calculator

See how a lump-sum prepayment reduces your loan burden

🏦 Compare Loan from 3 Banks

See EMI difference across banks for your loan amount of ₹10,00,000

% p.a.
% p.a.
% p.a.
🥇
SBI
8.5%
₹8,678/mo
Total: ₹20,82,776
🥈
HDFC
8.75%
₹8,837/mo
Total: ₹21,20,906
Save ₹-38,130 vs SBI
🥉
ICICI
9%
₹8,997/mo
Total: ₹21,59,342
Save ₹-76,567 vs SBI

📅 Amortization Schedule

Month-by-month loan repayment breakdown

MonthEMIPrincipalInterestBalancePaid %
Month 1₹8,678₹1,595₹7,083₹9,98,405
0%
Month 2₹8,678₹1,606₹7,072₹9,96,799
0%
Month 3₹8,678₹1,618₹7,061₹9,95,181
0%
Month 4₹8,678₹1,629₹7,049₹9,93,552
1%
Month 5₹8,678₹1,641₹7,038₹9,91,912
1%
Month 6₹8,678₹1,652₹7,026₹9,90,260
1%
Month 7₹8,678₹1,664₹7,014₹9,88,596
1%
Month 8₹8,678₹1,676₹7,003₹9,86,920
1%
Month 9₹8,678₹1,688₹6,991₹9,85,232
1%
Month 10₹8,678₹1,700₹6,979₹9,83,533
2%
Month 11₹8,678₹1,712₹6,967₹9,81,821
2%
Month 12₹8,678₹1,724₹6,955₹9,80,098
2%
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How to Use EMI Calculator India

Select your loan type (Home, Car, Personal, Education), enter loan amount, set interest rate and tenure. Get instant monthly EMI, total interest, amortization schedule, and bank comparison — all free, no login required.

EMI Formula — How It Works

EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ - 1) where P = Principal, r = monthly rate (Annual/12/100), n = months.
Example: ₹10 lakh at 8.5% for 20 years → EMI = ₹8,678/month · Total Interest = ₹10.83 lakh · Total Payment = ₹20.83 lakh.

When Should You Prepay Your Loan?

Prepaying in the first half of the tenure saves maximum interest — because early EMIs are mostly interest. A ₹2 lakh prepayment in year 2 of a 20-year home loan can save ₹4–6 lakh in total interest. Use our Prepayment Calculator above to see your exact savings.

Home Loan vs Car Loan vs Personal Loan — Key Differences

Home Loan: Lowest rates (8.5–9.5%), longest tenure (30 years), secured against property. Car Loan: Medium rates (8–10%), tenure 1–7 years, car as collateral. Personal Loan: Highest rates (10.5–24%), no collateral, fastest disbursement.

Frequently Asked Questions

When is the best time to prepay a home loan?

As early as possible — in first 5 years. In the initial years, almost 80–85% of EMI goes toward interest. Prepaying ₹1L in year 1 saves 3x more than prepaying the same ₹1L in year 15. Best strategy: prepay annual bonus or increment every year.

Which saves more — reduce EMI or reduce tenure?

Reduce tenure always saves more total interest. Example: ₹50L loan, prepay ₹3L after year 3. Reduce tenure saves ₹6.2L interest. Reduce EMI saves only ₹2.1L. Choose reduce EMI only if you need lower monthly cash outflow.

Is there a prepayment penalty on home loans?

RBI mandates: NO prepayment penalty on floating-rate home loans. Fixed-rate loans may have 2–4% penalty. Always confirm with your bank. For NBFC loans (Bajaj, LIC HFL), read prepayment clause before taking the loan.

How much should I prepay each year?

Financial advisors recommend prepaying 5–10% of outstanding principal annually. If your loan EMI is ₹30K/month, try to prepay ₹1–2L every year from bonuses or savings. Incremental prepayments beat lumpsum-only strategy for most salaried individuals.

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