Home Loan EMI
Calculate reducing-balance monthly home loan mortgage installments and interest schedule.
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Loan Prepayment Calculator · Official Calculation Report
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https://agworld.co.in/loan-prepayment-calculator/
Loan Prepayment Calculator
Calculate exact interest savings from lump-sum prepayments. Compare Strategy A (shorten loan tenure) vs Strategy B (lower monthly EMI) with mathematical precision.
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⚡ Dual Strategy Comparison
🛡️ Zero Prepayment Penalty
Loan & Prepayment Details
Prepayment Impact
| Balance Before Prepayment | ₹1,93,034.60 |
| Baseline Future Interest (No Prepay) | ₹2,23,856.77 |
| Baseline Remaining Term | 216 instalments |
Strategy A • Max Interest Savings
Recommended
Keep Original EMI & Reduce Tenure
Monthly EMI: ₹1,930.04
Interest Saved: ₹77,152.98
New Duration: 166 instalments
Future Interest: ₹1,46,703.79
Strategy B • Cashflow Relief
Reduce EMI & Keep Original Tenure
Revised EMI: ₹1,730.08
Interest Saved: ₹23,196.97
Tenure: 216 instalments
Future Interest: ₹2,00,659.80
Key Insights
- RBI Regulation 0% Prepayment Penalty
- Strategy A Power Saves 2x–3x More Interest
- Timing Impact Earlier Prepay Saves More
- Direct Principal Credit 100% Goes to Principal
Quick Facts
- Floating Rate Loans Zero Foreclosure Charges
- Fixed Rate Loans Check Bank Sanction Letter
- Frequency Annual Bonus Prepayments
- Tax Impact Reduced Sec 24(b) Deduction
Frequently Asked Questions
Why does Strategy A (keep EMI, reduce tenure) save far more interest?
Loan interest is calculated every month on the outstanding principal balance. By keeping your monthly EMI at the original amount, a much higher portion of each monthly payment goes directly towards reducing principal rather than interest. This creates an exponential acceleration that cuts years off your loan.
Are there penalties for prepaying a loan in India?
Under RBI directives, commercial banks and housing finance companies (HFCs) cannot charge any prepayment penalty or foreclosure fee on floating-rate individual loans (including home loans). Some fixed-rate personal loans or business loans may have prepayment fees, so always verify your loan agreement.
When is the best time in the loan tenure to prepay?
The earlier in your loan tenure you make prepayments, the higher your interest savings. During the initial years of a long-term loan (e.g. Years 1–7 of a 20-year home loan), interest constitutes 60–80% of each EMI. Prepaying during this phase eliminates years of compounding interest.
Is it better to prepay a home loan or invest in an equity SIP?
This depends on your loan interest rate versus expected investment return. If your home loan is at 8.5%–9.0% and you can earn 12%–14% CAGR in equity mutual funds, investing often generates higher net wealth over 15+ years. However, loan prepayment guarantees a risk-free, tax-free effective return equal to your loan interest rate.