misscall Give Missed Call for Home Loan +91 9706128128

Special Offers

×
notifications

Check Credit Score for FREE

Get your Credit Score for Free.

Click to Check Now
notifications

Home Loan

Loan for your dream home is just a click away!

APPLY NOW
notifications

MSME Business Loan

Take your business to greater heights with customised MSME Loans

APPLY NOW
notifications

Loan Against Property

Use your property to fulfil your financial needs.

Apply Now
notifications

Construction Loan

Build your home the way you want.

APPLY NOW

Home Loan Prepayment Calculator: Save Interest & Reduce Loan Tenure

₹ 1 lakh ₹ 10 Cr
9% 21%
Years Month
Year
1 year 25 years


Prepayment Type
Reduce EMI

Original EMI:
₹ 0.0

Current EMI:
₹ 0.0

Total Interest Without Prepayment
₹ 0.0

Total Interest With Prepayment
₹ 0.00

Your savings on interest is ₹ 0.0




The Home Loan Prepayment Calculator is an essential tool for anyone looking to save money on their home loan. It helps borrowers determine the impact of part prepayments on their overall loan repayment, enabling significant savings on interest and allowing for a shorter loan tenure. With the Home Loan Prepayment Calculator, you can make smarter financial decisions and manage your loan effectively.

What Is a Home Loan Prepayment Calculator?

A Home Loan Prepayment Calculator is a user-friendly online tool designed to help borrowers calculate the savings they can achieve by making part prepayments on their home loans. By inputting your loan details, such as the principal amount, interest rate, tenure, and prepayment details, the calculator provides insights into how prepayments can reduce your EMI, shorten the loan tenure, and lower the total interest paid.

Example Calculation Using the Home Loan Prepayment Calculator

Results:

The Home Loan Prepayment Calculator makes it easy to visualize these savings and decide the best repayment strategy for your needs.

Key Features of the Home Loan Prepayment Calculator

  1. Accurate Interest Savings Calculations: The calculator provides precise insights into how much interest you save by making prepayments.
  2. EMI Reduction: By using the Home Loan Prepayment Calculator, you can lower your monthly EMI and improve cash flow.
  3. Tenure Reduction: If you choose to shorten your loan tenure, the calculator will show how quickly you can become debt-free.
  4. Customizable Prepayment Options: Add multiple prepayment amounts at different intervals to see their cumulative effect.
  5. Quick Results: The Home Loan Prepayment Calculator generates results in seconds, helping you make informed decisions instantly.

How to Use the Home Loan Prepayment Calculator

The Home Loan Prepayment Calculator is simple to use and provides detailed results. Here’s how:

Step-by-Step Guide

  1. Enter Loan Details:
    • Loan Amount: ₹25,00,000
    • Interest Rate: 10.5%
    • Loan Tenure: 30 years
  2. Add Prepayment Details:
    • Enter the prepayment amount (e.g., ₹2,00,000).
    • Specify the month or year of prepayment.
  3. Choose Prepayment Type:
    • Reduce EMI: Lower your monthly payment.
    • Reduce Tenure: Shorten the repayment period to save more on interest.
  4. View Results:
    The Home Loan Prepayment Calculator will display:
    • Total Interest Saved
    • Adjusted EMI or Loan Tenure

By following these steps, the Home Loan Prepayment Calculator helps you plan your loan repayment effectively.

Why Use the Home Loan Prepayment Calculator?

The Home Loan Prepayment Calculator is an invaluable resource for borrowers, offering numerous benefits:

  1. Save Money on Interest: Making prepayments reduces your loan’s outstanding principal, which in turn lowers the total interest paid.
  2. Faster Loan Closure: The calculator allows you to see how prepayments can shorten your loan tenure, helping you achieve financial freedom sooner.
  3. Lower Monthly Financial Burden: With the Home Loan Prepayment Calculator, you can explore how reducing your EMI makes more funds available for other financial goals.
  4. Customizable and Easy-to-Use: The tool is designed to accommodate multiple prepayments, making it suitable for borrowers with varying financial situations.
  5. Instant Results: The Home Loan Prepayment Calculator delivers precise calculations within seconds, saving you time and effort.

Benefits of Prepaying Your Home Loan

Prepaying your home loan through a well-planned strategy offers significant advantages, such as:

  1. Interest Savings: Reducing the outstanding principal amount directly lowers the total interest payable on your loan.
  2. Shorter Loan Tenure: By choosing to reduce your loan tenure, you can repay the loan faster and save more on interest.
  3. Lower EMIs: Prepaying allows you to lower your monthly installment, improving your cash flow and financial flexibility.
  4. Improved Financial Stability: Clearing your loan faster or reducing EMI eases financial stress and enhances your credit score.

Should You Reduce EMI or Tenure?

When using the Home Loan Prepayment Calculator, you have two primary options: reduce EMI or reduce tenure. Here’s how to decide:

Reduce EMI

Reduce Tenure

When Should You Use the Home Loan Prepayment Calculator?

The best time to use the Home Loan Prepayment Calculator is when:

  1. You Are in the Early Loan Years: Prepayments in the initial years save the most interest, as the interest component is higher.
  2. You Receive a Windfall Gain: Utilize bonuses, tax refunds, or other windfall gains to make prepayments.
  3. You Want to Compare Savings: The Home Loan Prepayment Calculator lets you evaluate interest savings before deciding on the prepayment amount.

Factors to Consider Before Prepaying

Before making a prepayment, use the Home Loan Prepayment Calculator to account for the following factors:

  1. Emergency Savings: Ensure you have sufficient funds for emergencies before allocating money for prepayments.
  2. Prepayment Charges: Check Aavas policies regarding prepayment fees.
  3. Tax Benefits: Understand how prepayments may impact tax deductions under Section 80C and Section 24(b).

Why Choose Aavas for Your Home Loan Prepayment Calculator?

The Aavas Home Loan Prepayment Calculator stands out for its accuracy, ease of use, and quick results. With Aavas, you get:

  1. Accurate Savings Estimates: Precise calculations for interest savings and EMI/tenure reductions.
  2. Customizable Inputs: Tailor the calculator to your financial situation with multiple prepayments.
  3. Free Access: Use the Home Loan Prepayment Calculator anytime at no cost.
  4. Transparent Results: Get clear insights into how prepayments affect your loan repayment.

Start Saving with Aavas Today!

The Home Loan Prepayment Calculator is a powerful tool to help you save money on interest and reduce your loan burden. Whether you want to lower your EMI or shorten your loan tenure, the calculator provides the insights you need to make the best decision.

Take the first step toward financial freedom with Aavas! Visit aavas.in or call 1800-20-888-20 for expert assistance today.