Calculate, compare & optimize your home loan in real-time
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Loan Details
1L - 10 Cr
₹
0.1% - 25%
1 - 40 years
= 240 months
Monthly EMI
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Total Interest
—
Total Amount
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Maturity Date
—
Payment Breakdown
Amortization Schedule
Save lakhs in interest by making prepayments early in the loan tenure!
Additional / Extra Repayments - Regular
Extra Amount Frequency
Extra Amount (Rs.)
Starts From Month (No.)
Monthly
Bi-Monthly
Quarterly
Thrice Yearly
Half Yearly
Yearly
Additional / Extra Repayments - One Time
Extra Amount (Rs.)
Starts From Month (No.)
Ends at Month (No.)
Option A: Reduce EMI
New Monthly EMI—
Monthly Relief—
Interest Saved—
Option B: Reduce Tenure
Monthly EMI—
Years Saved—
Interest Saved—
Optimal Choice: Reducing loan tenure saves — more than reducing EMI!
Total Interest Cost Comparison
Set up 3 prepayment schedules and see how much interest you save and how fast you can become debt-free!
Annual Prepayment Scenarios
₹
₹
₹
Strategy Savings Comparison
Loan Summary Statement
Principal Loan Amount—
Annual Interest Rate—
Loan Tenure—
Standard Monthly EMI—
Standard Payoff & Cost Summary
Loan Start Date—
Standard Maturity Date—
Total Interest Cost—
Total Amount Payable—
Want to save on interest? Go to the Prepayment tab and add extra payments (monthly, yearly, or one-time) to see how much you can save and how much faster you can pay off your loan!
Prepayment Benefits Summary
Interest Saved (Savings)—
Debt-Free Earlier By—
New Payoff Date—
Revised Loan Term—
Original Loan Details
Principal Amount—
Original Tenure—
Interest Cost (Original)—
Maturity Date (Original)—
Revised Loan Details
Principal Amount—
Revised Tenure—
Interest Cost (Revised)—
Revised Payoff Date—
Disclaimer: This calculator is for informational purposes only. Actual interest rates, terms, and charges may vary depending on individual banks and loan agreements.
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How is Home Loan EMI Calculated?
Equated Monthly Installment (EMI) represents the fixed monthly payment you make to a lender. It consists of both the principal repayment and the interest charges. The mathematical formula used is:
EMI = [P x r x (1 + r)^n] / [(1 + r)^n - 1]
Where:
• P: Principal Loan Amount
• r: Monthly Interest Rate (Annual Rate / 12 / 100)
• n: Number of Monthly Payments (Tenure in Years × 12)
Tenure vs. EMI Reduction
When you make additional prepayments on a home loan, you have two optimization choices:
• Option A (Reduce EMI): Keeps your loan tenure the same but lowers your subsequent monthly payment, providing instant monthly financial relief.
• Option B (Reduce Tenure): Keeps your monthly EMI fixed, shortening the payoff term. This is highly recommended because it cuts compound interest early, saving double the interest cost.
Smart Prepayment Strategies
Interest compounding works against you in the early years because the balance is high. Making prepayments in the first 5 years yields the highest interest savings.
• Regular Prepayments: Adding an extra 10% to your EMI monthly or allocating one extra EMI annually can reduce a 20-year loan by 4–5 years.
• Lump-Sum: Use annual bonuses or maturity assets as one-time prepayments to directly slash your outstanding principal.
Frequently Asked Questions (FAQ)
No. According to Reserve Bank of India (RBI) directives, commercial banks and housing finance companies are prohibited from charging prepayment penalties or foreclosure fees on floating-rate home loans issued to individual borrowers. You are free to make partial or full prepayments at any time.
Borrowers can claim tax benefits under the Income Tax Act:
Section 80C: Principal repayments up to ₹1.5 lakh per financial year are tax-deductible.
Section 24(b): Interest paid up to ₹2 lakh annually is deductible for self-occupied properties.
Our simulator executes a month-by-month compounding amortized projection. It tracks each payment date, applies regular repeating schedules or one-time ranges in chronological order, and dynamically models interest accumulation on the declining balance to compare EMI vs. tenure options accurately.