Find out what paying a little extra each month actually buys you — in months shaved off the loan and in total interest never paid.
The schedule is recalculated month by month with the extra payment applied directly to principal. Because interest each month is charged on a smaller outstanding balance, every extra rupee compounds its own saving over the remaining term, which is why the interest saved is usually far larger than the extra amount paid.
Reducing the tenure saves considerably more interest, because you keep paying the same EMI against a smaller balance. Reducing the EMI improves monthly cash flow instead. If affordability is not the constraint, tenure reduction is the stronger financial choice.
For floating-rate home loans to individuals, the RBI does not permit foreclosure or prepayment penalties. Fixed-rate loans and many personal and car loans can still carry charges, so check your loan agreement before prepaying.
This calculator is for information only and is not investment, tax, or financial advice. Figures are estimates based on the assumptions you enter and are not a guarantee of future returns. Consult a SEBI-registered adviser or a qualified tax professional before acting.