Home›Home Loan Prepayment Calculator –Save Lakhs in Interest
🏠 Reduce Tenure = Maximum Savings
Home Loan Prepayment Calculator – Save Lakhs in Interest
Calculate exactly how much interest you save and how many years are cut off your loan by making a one-time prepayment. Compare reduce-EMI vs reduce-tenure strategies.
It depends: If home loan rate (8.5%) < expected investment return (12%+ SIP) → invest. After tax: effective home loan cost ≈ 6% (Section 24 benefit). If SIP gives 12% = 6% real advantage to invest. However, debt-free peace of mind is valuable. Good strategy: Invest 60% windfall in SIP, prepay 40% toward home loan.
Does prepayment reduce EMI or tenure?▼
You can choose either. Reducing tenure is mathematically optimal — saves more total interest. Example: ₹50L loan, 8.5%, 20yr, ₹5L prepayment at year 3: Reduce tenure → saves ₹8-10L interest. Reduce EMI → saves only ₹3-4L. Always choose reduce tenure for maximum benefit unless cash flow is tight.