About the Home Loan Prepayment Calculator
Calculate how much interest and tenure you can save by making part-payments on your home loan. Understanding how this works can significantly improve your financial planning. This tool is designed to provide you with the most accurate and up-to-date calculations required for your specific needs.
The Mathematical Formula
How to use this calculator?
Enter Loan Details
Input your original loan amount, interest rate, and total original tenure.
Enter Paid EMIs
Input the number of months you have already paid the EMI.
Enter Prepayment
Input the lump sum amount you want to prepay to the bank.
See Magic Savings
The calculator shows exactly how many years of EMI are wiped out and how many Lakhs you saved in interest.
Frequently Asked Questions (FAQs)
Q. Does prepayment reduce EMI or Tenure?
By default, banks reduce your remaining tenure and keep the EMI the same when you make a prepayment. This saves you the maximum amount of interest.
Q. Are there charges for home loan prepayment?
As per RBI rules, banks cannot charge any prepayment penalty on floating-rate home loans for individual borrowers.
Source & Citations: Mathematical models used in this tool are based on standard compounding formulas as recognized by the Reserve Bank of India (RBI) and major financial institutions.
Disclaimer: The results provided by this calculator are for informational purposes only. Actual returns or loan values may vary based on market conditions, bank policies, and taxation laws.