Home Loan EMI Calculator
EMI, amortization, part-payments, and a smart advisor that tells you exactly how much to prepay, when to stop, and whether a mutual fund beats your loan rate.
Open Calculator ↓Fill years automatically from a total budget:
Split a fixed yearly amount between prepaying the loan and a mutual fund, and see which mix builds the most combined wealth by the time your loan would've closed anyway.
| Strategy | Loan Prepay | MF | Result |
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Prepaying early years saves the most interest per rupee. But prepaying is really a guaranteed return equal to your loan rate — compare it against what that money could earn invested instead.
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Your Equated Monthly Instalment is calculated using the reducing-balance method: EMI = P × r × (1+r)ⁿ ⁄ ((1+r)ⁿ − 1), where P is the principal, r is the monthly interest rate, and n is the number of monthly instalments. Each EMI is split into a principal component and an interest component — early in the loan, interest dominates; later, principal dominates.
A rupee paid off in year 1 stops accruing interest for the loan's entire remaining tenure. The same rupee paid in year 15 only avoids a few years of interest. That's why front-loaded prepayments — more in the early years, tapering down — beat spreading the same total evenly or paying it late.
Prepaying is mathematically identical to a guaranteed, risk-free return equal to your loan's interest rate. If you can reliably earn more than that elsewhere — say in equity mutual funds averaging 12% against an 8.5% home loan — investing usually builds more wealth over the same horizon, though it carries market risk that prepayment does not. A blended approach lets you capture upside while still owning your home outright sooner.
Yes, but with diminishing returns — each year you shave off increases the EMI. Try a few tenures in the calculator above and compare the Total Interest figure to see where it stops being worth the extra EMI.
Part-payment (or prepayment) reduces your outstanding principal without closing the loan. Foreclosure means paying off the entire remaining balance and closing the loan account.
Most Indian banks do not charge prepayment penalties on floating-rate home loans as per RBI guidelines. Fixed-rate loans may still carry charges — check your loan agreement.
Last updated: August 2026
Prepay vs SIP ("we", "our", "the site") is a free calculator that helps visitors estimate home loan EMIs, amortization schedules, part-payment plans, and compare loan prepayment against mutual fund investing. This policy explains what information is collected when you use the site and how it's used.
All calculations — EMI, amortization, part-payment plans, and the prepay-vs-mutual-fund comparisons — run entirely in your browser. The loan amount, interest rate, tenure, and any other figures you enter are never transmitted to our servers, stored in a database, or shared with anyone. We do not require sign-up, and we do not collect names, emails, phone numbers, or financial account details.
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