Optimal Loan Prepayment Calculator
Minimize total interest across your loans with the latest Indian tax rules
Optimal Prepayment Strategy
Total Interest Without Prepayment
Total Interest With Prepayment
Total Savings
Time Saved
EMI Details
| Loan | EMI (₹) |
|---|
Optimal Prepayment Schedule
| Month | Loan | Prepayment (₹) | 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 – 2,50,000 Nil 2,50,001 – 5,00,000 5% 5,00,001 – 10,00,000 20% > 10,00,000 30% New Regime
Income Range (₹) Rate 0 – 3,00,000 Nil 3,00,001 – 7,00,000 5% 7,00,001 – 10,00,000 10% 10,00,001 – 12,00,000 15% 12,00,001 – 15,00,000 20% 15,00,001 – 20,00,000 25% > 20,00,000 30% - Annual Deduction Limits – We track:
section24Claimedresets each April (max ₹2 lakh/yr on interest)section80cClaimedresets 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
- Each month, sort loans by descending effectiveRate.
- Pay standard EMI; then apply your extra surplus to the top loan.
- Record per-prepayment: amount, interest saved, and tax benefit.
- 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.
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