Home Loan Prepayment
See how extra EMI payments cut interest and tenure.
See how extra EMI payments cut interest and tenure.
The Home Loan Prepayment takes your own numbers and projects the result using the method described below, showing every assumption rather than a single opaque figure.
EMI uses the standard reducing-balance formula. Each month, interest is charged on the outstanding balance, and everything else in your payment reduces principal. Adding extra to the monthly payment goes entirely to principal, which compounds forward — shrinking every future month's interest, which is why extra EMI saves far more than its face value suggests over a long tenure.
Home loan interest is deductible up to ₹2L/year under Section 24(b) for a self-occupied property, and principal repayment counts under Section 80C (within its ₹1.5L combined limit) — factor this tax benefit into the real cost of your EMI before comparing prepayment against investing instead.
Is the Home Loan Prepayment's result a fixed outcome?
No — every figure here is an illustrative projection based on the assumptions you enter, not a promised or fixed return. Change any input to see how the result moves.
Is tax already accounted for?
Home loan interest is deductible up to ₹2L/year under Section 24(b) for a self-occupied property, and principal repayment counts under Section 80C (within its ₹1.5L combined limit) — factor this tax benefit into the real cost of your EMI before comparing prepayment against investing instead.
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