Benefits of Using a Home Loan EMI Calculator with Prepayment Feature

Benefits of Using a Home Loan EMI Calculator with Prepayment Feature

 , Introduction

Prepaying a home loan is a clever move for borrowers. It helps complete the debt faster by paying extra EMIs each year.

Prepaying for a home loan is very popular these days and the RBI guidelines also state that there are no additional fees for making part-payments on a house loan with floating interest rates.

If one has any windfall gain, such as bonus payments from work, dividends from shares/investments, unexpected extra revenue (for self-employed), inherited money, etc., they can utilise a portion to make a partial prepayment on their house loan. Borrowers can also use a home loan prepayment calculator to calculate their savings if they opt for prepayment.

What is a home loan prepayment calculator?

A home loan prepayment calculator is an online tool that computes the possible savings on a home loan if a borrower decides to make extra payments toward the principal balance ahead of the regularly scheduled instalments.

To predict the reduction in interest costs and the time it will take to pay off the loan, the calculator considers the loan amount, interest rate, and prepayment amount. It assists homeowners in planning their mortgage repayment strategy and evaluating prepayment’s impact on their loan.

Borrowers can use it to comprehend the impact of partial prepayments on the home loan. Existing customers can also use the home loan EMI calculator with a prepayment feature to determine savings by prepaying their home loan.

How does a mortgage prepayment calculator work?

The following information is required to use a home loan prepayment calculator:

  • Original loan amount – It is the total amount borrowed for the home loan.
  • Tenure – It is the period for which the home loan is taken.
  • Interest rate – It is the rate of interest charged on the loan.
  • EMIs/no.of instalment paid – The number of EMIs one has already paid on the home loan.
  • Prepayment amount – It is the extra amount that the borrower plans to pay towards the principal balance.

Once the information above is provided, the calculator will calculate the impact of the prepayments on the loan and give the total interest saved, i.e., the amount of money saved in interest charges over tenure of the loan.

It will also show the total amount owed, including interest and principal, as well as the remaining EMIs.

One must note that the home loan EMI calculator and home loan prepayment calculator are different. The EMI calculator is used to compute the EMI amount that the borrower must pay in equal instalments during the tenure.

The prepayment calculator, on the other hand, assists in calculating the altered loan specifics of the loan, i.e., the new EMI amount and loan tenure following the prepayment of the home loan.

Benefits of home loan prepayment calculator

A few of the pros of using a home loan EMI calculator with a prepayment feature are as follows:

  • Prepaying can help one save money on interest costs throughout the life of the loan. The calculator can show how much one will save by prepaying, so one alters their payment plan accordingly.
  • A prepayment calculator can assist borrowers in efficiently planning their home loan repayment strategy and budgetingBorrowers may calculate how much money they can afford to put toward their monthly loan and see how it impacts the loan amount and interest rates.
  • Prepaying the housing loan online will help one pay the loan faster. The calculator may predict the new loan term based on the prepayments one wants to make.
  • The calculator allows the evaluation of several prepayment situations to find which works best. For example, borrowers can determine the impact of making a lump sum prepayment against smaller regular prepayments.
  •   Using a home loan prepayment calculator will help one see the possible benefits of prepaying the loan and make educated decisions about the mortgage repayment strategy.


Finally, a home loan EMI calculator with a prepayment function is helpful for borrowers trying to manage their mortgage obligations efficiently. The calculator allows them to assess the impact of various prepayment scenarios and select the best plan for their financial circumstances.

Borrowers may save money on interest costs, decrease their loan term, and make wise decisions about their mortgage repayment plan by utilising a home loan prepayment calculator. Overall, this application can assist in budgeting and reaching financial objectives more quickly.

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