Question 1

What is a Home Loan Prepayment Calculator?

Accepted Answer

A Home Loan Prepayment Calculator helps you see how extra monthly payments toward your home loan reduce total interest and shorten the tenor, factoring in your EMI and Indian tax benefits under Section 24 and 80C.

Question 2

Can I use this calculator for car or personal loans?

Accepted Answer

Yes, you can switch the loan type to Car Loan or Personal Loan. The calculator will compute EMIs, compare effective rates, and allocate your surplus to the highest post-tax-cost loan first.

Question 3

How does the calculator factor in tax benefits?

Accepted Answer

It tracks your claimed Section 24 (up to ₹2 lakh/yr for interest) and Section 80C (up to ₹1.5 lakh/yr for principal) deductions each financial year, applies your marginal tax rate (old or new regime), and adjusts each loan's effective interest rate accordingly.

Question 4

What input do I need to get started?

Accepted Answer

Enter each loan's type, outstanding balance, interest rate, remaining tenure; your annual income and chosen tax regime; plus the monthly surplus you wish to prepay.

Question 5

What output will I see?

Accepted Answer

You will see a side-by-side comparison of total interest with vs. without prepayment, individual EMIs, total savings in rupees and months, a comparison chart, plus a detailed month-by-month schedule of prepayments, principal balances, interest saved, and tax benefits.

Question 6

Is there any penalty for prepayment?

Accepted Answer

Most banks allow partial prepayments on floating-rate home loans without penalty, but fixed-rate loans or certain lenders may charge a small fee. Always confirm with your bank before making extra payments.

Question 7

When is the best time to prepay?

Accepted Answer

Extra prepayments early in the loan tenor deliver the highest interest savings, since you reduce principal sooner. Use the calculator to compare scenarios and pick the surplus level that fits your budget.

Question 8

How often should I update my claimed deductions?

Accepted Answer

The plugin resets your Section 24 and 80C claimed amounts automatically each April (start of the new financial year). You only need to enter what you have already used so far in the current year.

Question 9

Can I export or print the prepayment schedule?

Accepted Answer

Yes, after calculation, you can select and copy the month-by-month schedule or use your browser's Print function to save it as PDF for your records.

Question 10

Does prepayment affect my credit score?

Accepted Answer

Timely extra payments can improve your credit utilization and show strong repayment behavior, which may positively impact your credit score over time.

Question 11

Can I adjust surplus during the loan?

Accepted Answer

Absolutely, simply change your monthly surplus input and recalculate to see an updated optimal strategy at any time.

Income (₹)	Tax Rate
0 – 2.5L	0%
2.5L – 5L	5%
5L – 10L	20%
> 10L	30%

Income (₹)	Tax Rate
0 – 3L	0%
3L – 7L	5%
7L – 10L	10%
> 15L	30%

Optimal Loan Prepayment Calculator

Optimal Prepayment Strategy

Without Prepayment

With Prepayment

Total Savings

Time Saved

Tax Benefits (Old Regime)

Section 24 Benefit

Section 80C Benefit

EMI Details

Optimal Prepayment Schedule

📊 Complete Guide: How to Use This Calculator

Select Tax Regime

Enter Annual Income

Monthly Prepayment

Add Your Loan(s)

View Results

Tax Benefits

Old Regime Tax Slabs

New Regime Tax Slabs

Smart Allocation Algorithm

Practical Tips

Common Questions

Important Notes

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