Home loan EMI & prepayment calculator
A 25-year loan costs you more in interest than the house did. This shows the real number — and what a prepayment, monthly or one-off, does to it.
| Year | EMI paid | Interest | Principal | Prepaid | Balance |
|---|---|---|---|---|---|
| 1 | ₹4,83,136 | ₹4,22,681 | ₹60,455 | — | ₹49,39,545 |
| 2 | ₹4,83,136 | ₹4,17,337 | ₹65,799 | — | ₹48,73,745 |
| 3 | ₹4,83,136 | ₹4,11,521 | ₹71,615 | — | ₹48,02,130 |
| 4 | ₹4,83,136 | ₹4,05,191 | ₹77,945 | — | ₹47,24,185 |
| 5 | ₹4,83,136 | ₹3,98,301 | ₹84,835 | — | ₹46,39,350 |
| 6 | ₹4,83,136 | ₹3,90,803 | ₹92,334 | — | ₹45,47,016 |
| 7 | ₹4,83,136 | ₹3,82,641 | ₹1,00,495 | — | ₹44,46,521 |
| 8 | ₹4,83,136 | ₹3,73,758 | ₹1,09,378 | — | ₹43,37,143 |
| 9 | ₹4,83,136 | ₹3,64,090 | ₹1,19,046 | — | ₹42,18,097 |
| 10 | ₹4,83,136 | ₹3,53,568 | ₹1,29,569 | — | ₹40,88,529 |
| 11 | ₹4,83,136 | ₹3,42,115 | ₹1,41,021 | — | ₹39,47,508 |
| 12 | ₹4,83,136 | ₹3,29,650 | ₹1,53,486 | — | ₹37,94,022 |
| 13 | ₹4,83,136 | ₹3,16,083 | ₹1,67,053 | — | ₹36,26,969 |
| 14 | ₹4,83,136 | ₹3,01,317 | ₹1,81,819 | — | ₹34,45,150 |
| 15 | ₹4,83,136 | ₹2,85,246 | ₹1,97,890 | — | ₹32,47,260 |
| 16 | ₹4,83,136 | ₹2,67,754 | ₹2,15,382 | — | ₹30,31,878 |
| 17 | ₹4,83,136 | ₹2,48,717 | ₹2,34,420 | — | ₹27,97,458 |
| 18 | ₹4,83,136 | ₹2,27,996 | ₹2,55,140 | — | ₹25,42,318 |
| 19 | ₹4,83,136 | ₹2,05,444 | ₹2,77,692 | — | ₹22,64,626 |
| 20 | ₹4,83,136 | ₹1,80,899 | ₹3,02,238 | — | ₹19,62,389 |
| 21 | ₹4,83,136 | ₹1,54,184 | ₹3,28,953 | — | ₹16,33,436 |
| 22 | ₹4,83,136 | ₹1,25,107 | ₹3,58,029 | — | ₹12,75,407 |
| 23 | ₹4,83,136 | ₹93,461 | ₹3,89,676 | — | ₹8,85,731 |
| 24 | ₹4,83,136 | ₹59,017 | ₹4,24,119 | — | ₹4,61,612 |
| 25 | ₹4,83,141 | ₹21,529 | ₹4,61,612 | — | ₹0 |
Reducing-balance method: interest each month is charged on what you still owe. A prepayment keeps the EMI unchanged and shortens the loan instead — the default treatment at Indian and Australian banks.
enMoney computes this automatically from the transactions you import — Indian, Australian and US holdings in one ledger, with each regime's own tax rules.
See what enMoney tracksHome loans use a reducing balance: each month's interest is charged only on what you still owe. Your EMI stays fixed, so as the balance falls, more of each instalment repays principal. Early in the loan almost all of it is interest — which is exactly why prepaying early has an outsized effect.
When you prepay, banks keep your EMI unchanged and shorten the remaining term (the default at both Indian and Australian lenders). The simulator models exactly that: a monthly extra amount, a one-off lump sum in a chosen month, or both. The savings figure is interest only — prepaying ₹5 lakh and being told you "saved ₹5 lakh of principal" is your own money coming back, and no calculator should count it.
One honest caveat: banks re-quote EMIs to the nearest rupee and apply rate changes on their own reset dates, so treat the schedule as a plan rather than a statement. The savings direction and scale hold even when a real bank's rounding differs by a few rupees.
Frequently asked questions
How is home loan EMI calculated?
EMI = P·r·(1+r)ⁿ / ((1+r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 1200), and n is the number of months. Each month, interest accrues on the outstanding balance and the rest of the EMI repays principal.
Is it better to reduce EMI or tenure when prepaying?
Reducing tenure — keeping the EMI constant — saves substantially more interest, because the balance falls faster while monthly outflow is unchanged. Reducing the EMI eases monthly cash flow but leaves the loan running longer. Banks default to tenure reduction; this calculator models that.
Does prepaying early matter more than prepaying later?
Yes, decisively. Early in the loan most of each EMI is interest, so an early prepayment stops decades of compounding on that principal. The same prepayment in year 20 saves far less because little interest remains.
Are there prepayment charges on home loans?
In India, floating-rate home loans to individuals carry no prepayment penalty by RBI rule; fixed-rate loans may charge one. In Australia, variable loans are typically penalty-free while fixed-rate loans can have break costs. Check your loan contract before treating these savings as final.