Home Loan EMI & Prepayment Calculator
Calculate monthly home loan installments and simulate how regular annual prepayments slash your loan tenure and interest burden by over 40%.
Loan & Prepayment Parameters
Monthly EMI Installment
₹₹43,391.16
Total Amount Payable: ₹₹1,04,13,878.80
Total Loan Amount
₹₹50,00,000.00
48% of total
Total Interest
₹₹54,13,878.80
52% of total
Prepayment Power:
Paying an extra ₹₹1,00,000.00/year reduces your loan tenure from 20 years to 14 years and saves ₹₹18,55,389.33 in interest!
Standard Equated Monthly Installment (EMI) Formula
All calculations on InvestResearch India execute with 28-digit precision arithmetic via decimal.js, eliminating floating-point drift and adhering to statutory regulatory conventions.
Example: ₹50,00,000 Home Loan for 20 Years @ 8.75% with ₹1,00,000 Annual Prepayment
Principal: ₹50,00,000 | Interest Rate: 8.75% p.a. | Tenure: 20 Years (240 months) | Annual Prepayment: ₹1,00,000
1. Base Monthly EMI = ₹44,186 2. Without Prepayment: Total Repayment = ₹1,06,04,544 (Interest: ₹56,04,544 — interest exceeds principal!) 3. With ₹1,00,000 Annual Prepayment: - Tenure reduced from 20 Years to 13.8 Years (Over 6 years shaved off) - Total Interest Paid: ₹35,82,000 - Net Interest Saved: ₹20,22,544 in cash savings
Statutory Tax Framework (Union Budget FY 2026–27)
Under the Old Tax Regime, principal repayment qualifies for Section 80C deduction (up to ₹1.5L) and interest qualifies under Section 24(b) (up to ₹2.0L). Under the New Tax Regime, no Section 80C or 24(b) deduction is available for self-occupied property.
Frequently Asked Questions
Can Indian banks charge prepayment penalties on floating rate home loans?
No. Under Reserve Bank of India (RBI) directives, commercial banks and Housing Finance Companies (HFCs) are strictly prohibited from charging any foreclosure charges or prepayment penalties on floating rate housing loans sanctioned to individual borrowers.
Is it better to reduce EMI or reduce tenure when prepaying?
Reducing tenure saves significantly more interest than reducing EMI. Keeping your EMI constant while reducing remaining tenure ensures that a greater proportion of every future monthly installment goes toward principal repayment.