Optimal Loan Prepayment Calculator

Minimize total interest across your loans with the latest Indian tax rules

Calculator
How It Works

Optimal Prepayment Strategy

Total Interest Without Prepayment

₹0

Total Interest With Prepayment

₹0

Total Savings

₹0

Time Saved

0 months

EMI Details

LoanEMI (₹)

Optimal Prepayment Schedule

MonthLoanPrepayment (₹)Remaining Principal (₹)Interest Saved (₹)Tax Benefit (₹)

How the Home Loan Prepayment Calculator Works

Our Home loan prepayment calculator is the most comprehensive tool for Indian borrowers in FY2025–26. Whether you’re using it as a Home loan prepayment calculator with EMI, a Personal loan prepayment calculator or a Car loan prepayment calculator, it blends standard EMI schedules with real-world tax shields (Section 24 & 80C), slab-wise marginal rates, and per-year deduction limits—so you always know exactly where each extra rupee will do the most good.

1. Add Your Loans & Instantly See EMIs

  • Loan Type & Amount – Select Home, Car or Personal loan; enter the outstanding balance and interest rate.
  • Tenure & Start Date – Specify remaining months and origination date; we calculate the precise EMI schedule.
  • Live EMI Preview – As you type, our Home loan prepayment calculator with EMI displays:
    • Monthly EMI (principal + interest)
    • Total interest payable over the remaining tenor

2. Choose Your Tax Regime & Enter Annual Income

  • Old vs. New Regime – Toggle between:
    • Old Regime: Allows home-loan interest deduction under Section 24 (up to ₹2 lakh) and principal under Section 80C (up to ₹1.5 lakh).
    • New Regime: Lower slab rates but no home-loan deductions.
  • Marginal Tax Rate – Enter your total taxable income; we auto-detect your marginal rate per FY 2025–26 slabs:
    Old Regime
    Income Range (₹)Rate
    0 – 2,50,000Nil
    2,50,001 – 5,00,0005%
    5,00,001 – 10,00,00020%
    > 10,00,00030%
    New Regime
    Income Range (₹)Rate
    0 – 3,00,000Nil
    3,00,001 – 7,00,0005%
    7,00,001 – 10,00,00010%
    10,00,001 – 12,00,00015%
    12,00,001 – 15,00,00020%
    15,00,001 – 20,00,00025%
    > 20,00,00030%
  • Annual Deduction Limits – We track:
    • section24Claimed resets each April (max ₹2 lakh/yr on interest)
    • section80cClaimed resets each April (max ₹1.5 lakh/yr on principal)

3. Compute Effective Post-Tax Interest Rates

For each home loan, we calculate:


// monthlyInterest = principal × (annualRate/12)
// deductibleInterest = min(monthlyInterest, remainingSection24)
// deductiblePrincipal = min(principalPaid+extraPrepayment, remainingSection80C)
// taxSavings = (dedInterest + dedPrincipal) × marginalRate
// effectiveRate = annualRate × (1 – taxSavings/annualInterest)

4. Allocate Your Monthly Surplus Greedily

  1. Each month, sort loans by descending effectiveRate.
  2. Pay standard EMI; then apply your extra surplus to the top loan.
  3. Record per-prepayment: amount, interest saved, and tax benefit.
  4. Once paid off, move surplus to the next highest-rate loan.

5. Review Your Detailed Prepayment Plan

  • Comparison: Interest paid with vs. without prepayments.
  • Savings: Total interest + tax benefits saved and months trimmed.
  • Full Schedule: Month-by-month table of prepayments, remaining principal, interest saved, and tax benefits.

Related Financial Tools