Should I reduce EMI or reduce tenure after prepayment?

Reducing tenure usually saves more interest. Reducing EMI improves monthly cash flow. Pick based on your cash needs.

Are there prepayment charges on home loans?

Floating-rate home loans for individuals typically have no foreclosure charges under RBI rules. Confirm your loan agreement.

When is the best time to prepay?

Earlier in the loan, when interest share is highest, prepayment usually saves more. Keep an emergency fund before large prepays.

Does this include tax benefits?

No. Interest tax benefits under Section 24(b) may fall as outstanding principal drops. Factor tax if you claim deductions.

Can I prepay partially multiple times?

Most lenders allow part-prepayment. Check minimum amount, notice period, and how the bank applies the amount.

Loan Prepayment Calculator

See interest saved and tenure or EMI reduction when you make a part-prepayment on your outstanding loan.

Prepayment Details

Outstanding Principal₹30.00 L

₹1.00 L₹2.00 Cr

Interest Rate (p.a.)8.5%

6%15%

Remaining Tenure15 years

1 years30 years

Prepayment Amount₹5.00 L

₹10,000₹50.00 L

Interest Saved

₹9,88,521

Current EMI₹29,542

EMI (unchanged)₹29,542

Tenure Now180 months

Tenure After Prepay130 months

Months Saved50 months

Interest Without Prepay₹23,17,594

Interest With Prepay₹13,29,073

Month-by-month principal, interest and outstanding balance (130 EMIs).

Tenure

130 mo

Total Principal

₹25,00,000

Total Interest

₹13,29,073

Total Payment

₹38,29,073

Month	EMI	Principal	Interest	Balance
1	₹29,542	₹11,834	₹17,708	₹24,88,166
2	₹29,542	₹11,918	₹17,625	₹24,76,248
3	₹29,542	₹12,002	₹17,540	₹24,64,246
4	₹29,542	₹12,087	₹17,455	₹24,52,159
5	₹29,542	₹12,173	₹17,369	₹24,39,987
6	₹29,542	₹12,259	₹17,283	₹24,27,728
7	₹29,542	₹12,346	₹17,196	₹24,15,382
8	₹29,542	₹12,433	₹17,109	₹24,02,949
9	₹29,542	₹12,521	₹17,021	₹23,90,427
10	₹29,542	₹12,610	₹16,932	₹23,77,817
11	₹29,542	₹12,699	₹16,843	₹23,65,118
12	₹29,542	₹12,789	₹16,753	₹23,52,329

About Loan Prepayment Calculator

See how a part payment can cut interest — and compare reducing tenure versus reducing EMI.

How it works

Enter outstanding principal, rate, remaining tenure and prepayment amount. Compare interest saved under both strategies.

Practical tips

Reducing tenure usually saves more interest if cash flow allows keeping the same EMI.

Important to know

Check foreclosure charges and floating-rate reset clauses with your lender.

Frequently Asked Questions

Should I reduce EMI or reduce tenure after prepayment?: Reducing tenure usually saves more interest. Reducing EMI improves monthly cash flow. Pick based on your cash needs.
Are there prepayment charges on home loans?: Floating-rate home loans for individuals typically have no foreclosure charges under RBI rules. Confirm your loan agreement.
When is the best time to prepay?: Earlier in the loan, when interest share is highest, prepayment usually saves more. Keep an emergency fund before large prepays.
Does this include tax benefits?: No. Interest tax benefits under Section 24(b) may fall as outstanding principal drops. Factor tax if you claim deductions.
Can I prepay partially multiple times?: Most lenders allow part-prepayment. Check minimum amount, notice period, and how the bank applies the amount.