হোম লোন ক্যালকুলেটর (Home Loan Calculator)

How home loan prepayment saves you money

A home loan EMI is mostly interest in its early years. When you make a one-time prepayment, that lump sum goes straight against the outstanding principal. Because interest each month is charged on the remaining balance, a smaller balance means less interest for every remaining month — and since the EMI stays the same, the loan finishes earlier. This calculator keeps the EMI constant and shortens the tenure, which is the most common (and usually most beneficial) way Indian lenders apply prepayments.

The earlier in the loan you prepay, the more you save, because there is more interest still ahead to avoid. The same ₹1 lakh prepaid in month 1 saves far more than in month 200.

Prepay or invest? The honest tradeoff

Prepaying earns you a guaranteed return equal to your loan rate — every rupee of interest you avoid is a rupee you keep, with zero risk. Investing the same amount might earn more, but that return is uncertain and can be taxed. So the comparison is not just “which number is bigger” — it's a bigger-but-risky figure against a smaller-but-certain one. This tool shows both, compounded over the same horizon, so you can judge the tradeoff for your own risk appetite. A common middle path is to invest when your expected return comfortably clears your loan rate, and prepay otherwise.

FAQ

Does prepaying reduce my EMI or my loan tenure?

This calculator keeps your EMI constant and shortens the tenure, which usually saves the most interest. Most Indian lenders let you choose; reducing tenure is generally the better deal because you stop paying interest sooner.

When is the best time to make a prepayment?

As early as possible. Interest is charged on the outstanding balance, and the balance is highest in the early years, so an early prepayment avoids the most future interest. The same amount prepaid in year 1 saves far more than in year 15.

Is it better to prepay my home loan or invest the money?

Prepaying gives a guaranteed return equal to your loan interest rate. Investing may give more, but it is not guaranteed and may be taxed. Compare the two compounded over the same time horizon (this tool does that) and weigh the certainty of prepaying against the higher-but-risky expected return of investing.

Is the tax figure in this tool accurate?

No — treat it as an editable assumption only. The long-term capital gains rate is something you should verify against current rules before relying on any after-tax number. This tool is educational and not investment or tax advice.