What is a Home Loan Prepayment Calculator?
A prepayment reduces principal, but the benefit depends on when it happens and what you do next. Keeping EMI unchanged usually shortens tenure; keeping tenure unchanged usually lowers EMI.
Enter the current outstanding balance, EMI, rate, remaining tenure, prepayment amount and timing. The calculator compares the revised path against continuing without that prepayment.
Prepayment simulation
Because interest is charged on outstanding principal, earlier prepayments generally have more time to reduce future interest.
Reduce EMI or reduce tenure?
Keeping EMI unchanged directs the benefit into faster principal reduction and normally saves more interest. Lowering EMI preserves the original schedule but releases monthly cash flow.
Frequently asked questions
Does this include a prepayment penalty?
No. Add any applicable lender charge separately when evaluating the decision.
What if my loan rate changes later?
The result assumes the entered rate remains constant. Floating-rate changes will alter both the baseline and revised path.
Can I model several prepayments?
This version models one prepayment at a time. Run multiple scenarios sequentially if you want to test a staged plan.