₹ Savings Comparison
📖 How to Use This Prepayment Calculator
- 1 Enter your Current Loan Balance
- 2 Input Remaining Tenure (Months/Years)
- 3 Add Prepayment Amount (Part Payment)
- 4 Choose Strategy: Reduce Tenure vs Reduce EMI
The Math Behind Prepayment
Savings = Future Interest Liability - New Interest Liability
Every rupee prepaid goes 100% towards Principal. This drastically reduces the interest base for all future months.
₹ Reduce Tenure vs Reduce EMI: The Verdict
- ₹ Golden Rule: Always choose to Reduce Tenure to maximize interest savings. Reducing EMI saves very little.
- ₹ Timing Matters: Prepaying ₹1 Lakh in Year 1 saves 5x more interest than prepaying it in Year 15.
- ₹ Zero Penalty: RBI mandates ZERO prepayment charges for floating rate home loans for individuals.
- ₹ Strategy: Use annual bonuses to prepay 5-10% of outstanding principal every year to become debt-free in half the time.