Option one
Keep EMI same, reduce tenure
Your monthly outflow stays familiar, but the reduced balance is paid off sooner. This generally delivers the highest interest saving because the loan remains outstanding for fewer months.
Free India home loan tool
Make your home loan work harder.
See how a one-time home loan prepayment can reduce your interest and tenure — or lower your EMI — using an estimate built for Indian loans.
Instant calculation
See what a prepayment can save
Use your current outstanding balance and remaining tenure. Results update as you type.
Remaining tenure repayment period
years
Interest saved after prepayment
₹17,59,209
With the same EMI.
Current EMI
₹43,391Interest without prepayment
₹54,13,879Tenure saved
4 years 4 monthsNew outstanding amount
₹45,00,000New total interest
₹36,54,670Prepayment is applied immediately.
Choose your outcome
EMI or tenure?
Both options assume the same rate and a one-time prepayment.
Selected comparison
Before vs after prepayment
EMI stays constant
MetricBeforeAfter
Monthly EMI₹43,391₹43,391
Remaining tenure20 years15 years 8 months
Outstanding at prepayment₹50,00,000₹45,00,000
Total interest₹54,13,879₹36,54,670
Loan cost
Principal vs interest
Shorter interest bar means lower cost.
Without prepayment₹1,04,13,879 total
Principal 48.01%Interest 51.99%
With prepayment₹86,54,670 total
Principal 57.77%Interest 42.23%
Estimate only. Assumes a fixed reducing-balance rate, monthly EMI payments, no prepayment charges and no future rate changes. Actual lender schedules may vary with daily interest, rounding and loan terms.
The basics
How home loan prepayment works
A home loan EMI has two parts: interest on the outstanding balance and principal repayment. A prepayment goes towards the principal, so future interest is calculated on a smaller balance.
This calculator first applies the current EMI up to the selected prepayment date. It then compares the two common choices: keep the EMI and close earlier, or keep the original end date and pay a lower EMI.
Results are calculated in your browser. No loan details are sent to a server, stored in a database or used for signup.
Option two
Keep tenure same, reduce EMI
The original end date stays unchanged and your monthly EMI falls. This can free up cash flow, while still reducing the total interest compared with making no prepayment.
Worked example
₹50 lakh loan, ₹5 lakh prepayment
For an outstanding loan of ₹50,00,000 at 8.5% with 20 years remaining, a ₹5,00,000 prepayment now reduces the balance to ₹45,00,000.
If the EMI stays the same, the estimated interest saving is ₹17,59,209 and the tenure falls by 52 months.
Start with the EMI
Know your current repayment?
Use the Chase Clarity EMI Calculator first to estimate your EMI, total interest and amortization schedule, then bring those numbers here to model a prepayment.
Questions, answered
Home loan prepayment FAQs
What is home loan prepayment?
Home loan prepayment is a one-time payment towards the outstanding principal before the scheduled end of the loan. A part-prepayment reduces the balance on which future interest is calculated.
Is it better to reduce EMI or reduce tenure after prepayment?
Reducing tenure usually saves more interest because you continue paying the same EMI and close the loan sooner. Reducing EMI can improve monthly cash flow while keeping the original end date. The better choice depends on your liquidity and goals.
Does prepayment reduce home loan interest?
Usually, yes. Interest on a reducing-balance home loan is calculated on the outstanding principal. Paying part of that principal earlier reduces future interest, subject to any lender charges or rate changes.
Can I prepay the entire outstanding home loan?
Yes, a full prepayment closes the outstanding balance in the calculator. Check your lender’s foreclosure process, documentation and any applicable charges before making the payment.
Are the results exact lender figures?
No. This calculator is an estimate based on a fixed annual rate and monthly reducing-balance amortization. Lenders can differ because of daily interest, rounding, rate resets, fees, insurance and prepayment terms.
Planning your loan from the beginning? Try the EMI Calculator or browse all Chase Clarity tools.