How it works
Enter the loan amount, the yearly interest rate and the tenure. The EMI, the total interest and the split between principal and interest appear straight away.
The plans below are common habits. “One extra EMI a year” adds a thirteenth payment every year. “Add 10% to every EMI” makes each payment a little bigger. “Raise your EMI by 5% every year” follows a salary that grows. Each is run month by month on your loan.
Pick a plan to see it on the chart. The dashed line is the plain loan and the solid line is the plan. The gap between where they reach zero is the time you save, and the gap in total interest is the money you save.
Set a goal, such as finishing a 20-year loan in 15 years, to see the extra monthly payment that gets you there.
The formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
P is the loan, r is the monthly rate (yearly rate ÷ 12 ÷ 100) and n is the number of months. Each month the interest is the balance × r, and the rest of the EMI reduces the balance. Extra payments reduce the balance directly, so every later month charges less interest.
A worked example
A loan of ₹50,00,000 at 8.5% for 20 years has an EMI of about ₹43,391 and total interest of about ₹54.1 lakh. One extra EMI each year clears it in about 16 years 9 months and saves about ₹10.3 lakh of interest.
Frequently asked questions
Which plan is best?
The one you can keep up without strain. A smaller habit you stick to beats a big one you stop. Also keep an emergency fund before you prepay.
Is prepaying better than investing the money?
It depends on your loan rate, what you can earn after tax and how comfortable you are with risk. Prepaying gives a certain saving equal to your loan rate. Compare it with what you could earn elsewhere.
Does my lender allow part payments?
Banks usually allow them, and cannot charge a penalty on floating-rate home loans to individuals, but fixed-rate and other loans may have charges. Check your loan agreement. Also ask whether extra money shortens the tenure or lowers the EMI.
What if my rate changes?
On a floating-rate loan the rate, and so the EMI or tenure, can change. This planner assumes one rate for the whole loan.