Before
₹1.04 Cr
After
₹79.79L
₹24.35L
Lesser on repayment
EMI
₹43.4K
Saved
8y 9m
New Tenure
11y 3m
₹10,000 monthly prepayment at 10% step-up saves ₹24.35L over 20 years
Prepayments
₹21,21,557 total
₹24.35L
saved
Home Loan Prepayment Calculator India
HomePe's home loan prepayment calculator shows you exactly how much interest you can save by making extra payments on your home loan. Enter your loan amount, interest rate, and tenure — then add prepayment plans to see the impact in real time.
What is Freedom Fund?
Freedom Fund is HomePe's signature feature for home loan borrowers. Instead of just making extra EMI payments, you start a SIP (Systematic Investment Plan) alongside your EMIs. HomePe tracks two lines — your loan outstanding (shrinking with EMIs) and your investment corpus (growing with SIP). When the corpus crosses your outstanding loan, HomePe notifies you to close your entire home loan in one shot. On a ₹50L loan at 8.5% for 20 years, a ₹10,000/month SIP can help you close the loan 7 years early and save ₹18L in interest.
How to close your home loan early
Enter your loan details — principal amount, interest rate, and remaining tenure.
Add a prepayment plan — set how much extra you can pay each month, with an optional annual step-up percentage.
Add a Freedom Fund SIP — invest alongside your EMIs in mutual funds. HomePe shows when your corpus will cross your outstanding loan.
See your savings instantly — the calculator shows total interest saved, months saved, and your new loan closure date.
Why prepaying your home loan saves lakhs
In a standard home loan, more than 40% of your total repayment goes toward interest. On a ₹50L loan at 8.5% for 20 years, you pay ₹43.4L in interest — almost as much as the loan itself. Every rupee of prepayment goes directly toward reducing your principal, which means less interest in every subsequent month. A ₹10,000 monthly prepayment with a 10% annual step-up can save over ₹18L in interest and close your loan 7 years early.
Bank-specific prepayment rules in India
Most Indian banks charge zero prepayment penalty on floating-rate home loans (RBI mandate). However, each bank has different minimum prepayment amounts. HomePe knows these rules and applies the correct logic for your bank automatically.
| Bank | Min. Prepayment | Penalty (Floating) |
|---|---|---|
| HDFC Bank | No minimum | Nil |
| SBI | No minimum | Nil |
| Kotak Bank | 2% of principal | Nil |
| LIC HFL | 2% of principal | Nil (after 6-mo lock-in) |
| PNB Housing | ₹1,00,000 | Nil |
Frequently asked questions
Is there a penalty for prepaying my home loan?
No. RBI mandates that floating-rate home loans in India have zero prepayment charges. If you have a fixed-rate loan, check with your bank — some charge 2-3% on the prepaid amount.
Should I prepay my home loan or invest in mutual funds?
HomePe's Freedom Fund lets you do both. Instead of choosing between prepayment and investing, you invest in a SIP alongside your EMIs. When your corpus exceeds your outstanding loan, you close the entire loan in one shot — getting the best of both worlds.
How much can I save by prepaying ₹10,000 per month?
On a ₹50L home loan at 8.5% for 20 years, ₹10,000/month with a 10% annual step-up saves approximately ₹18L in interest and closes the loan 7 years early. Use the calculator above to see your exact savings.