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Want to close your loan faster? Compare two strategies — paying one extra EMI every year vs making a one-time part payment — and see exactly how many months you save and how much interest you avoid.
Illustrative extra-payment scenario: Enter an extra-payment amount that fits the scenario you want to test, either as an annual payment or a monthly top-up.
One-time part payment: Use a lump sum (bonus, windfall) to reduce outstanding principal. The impact is immediate — future EMIs charge interest on a lower balance.
Both strategies reduce your total interest paid. The calculator shows the exact months saved and interest saved for your loan details.
Paying 1 extra EMI per year saves 24 months and ₹3.46 L in interest. A one-time payment of ₹3.00 L saves 32 months and ₹6.55 L in interest.
Each December, pay one additional EMI directly to principal.
Pay ₹3.00 L today, keep the same EMI, close earlier.
Many lenders charge a foreclosure / prepayment penalty of 2–4% on the outstanding principal for fixed-rate loans. However, per RBI guidelines (2012), banks and NBFCs cannot levy prepayment charges on floating-rate home loans for individual borrowers. Always confirm with your lender before making a part payment. Factor in any penalty when comparing strategies — it reduces effective interest savings.
Illustrative only. Calculations assume constant interest rate and no processing fees. Actual savings may vary. Not financial advice.