Home loan prepayment calculator

How this estimate works

Recompute monthly balances after the lump sum. Keep the scheduled EMI to reduce tenure, or recalculate EMI over the remaining months. Apply recurring extras from the first month.

Use the outstanding principal and remaining tenure from your current statement. The original sanctioned amount is not the right starting point after repayments have already reduced the balance. Enter the rate that currently applies, the lump sum you can pay and the month when you plan to pay it. A recurring extra is modelled from the next monthly payment onward.

The first option keeps the scheduled instalment unchanged, so the smaller principal can be repaid earlier. The second recalculates the instalment over the remaining contractual months after the lump sum. Continuing monthly extras can shorten that second schedule as well. Interest saved compares each new schedule with the same loan continuing without extra payments. Both calculations use the same constant interest rate.

The model applies the lump sum at the start of the chosen payment month, before calculating that month’s interest. Real lenders can calculate interest daily and credit a prepayment on a different date. That timing can change the statement amount. If a lump sum exceeds the balance, only the outstanding principal is applied. Keep funds for any accrued interest and confirmed closure expenses outside the extra principal amount.

Read the linked RBI prepayment direction and your lender’s operative terms. The published rule covers specified floating-rate loans to individuals and distinguishes the status of a dual-rate loan when payment is made. It does not justify treating every fixed-rate product as charge-free. This estimate excludes fees, tax effects and returns you might have earned on the cash. Preserve an emergency reserve before committing a lump sum and obtain an updated schedule after the lender credits it.

If your recurring extra already closes the loan before the planned lump sum, the later lump sum is unused. The schedule should be read as a sequence of actual principal repayments, not a commitment to pay money after closure. Confirm the lender’s instructions for allocating extra funds to principal and retain evidence that each transfer was applied as intended on your account.

Sources and limits

• The published directions prohibit prepayment charges for floating-rate non-business loans to individuals, with or without co-obligants, sanctioned or renewed from 1 January 2026. For dual-rate loans, the rate type at prepayment matters. Check the operative lender terms. Reserve Bank of India, checked 2026-11-12. Effective basis: 2026-01-01.
• Reducing-balance EMI formula, monthly interest and constant-rate repayment assumptions. Kotak Mahindra Bank, checked 2026-11-12. Effective basis: not stated by publisher.

Questions about this tool

This is general information, not legal, tax or financial advice. Check with a qualified professional for your case.

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