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

📱 Other Useful Financial Calculators from Getaka

Explore our comprehensive suite of financial calculators designed for Indian investors. Each tool is updated with latest regulations and designed to help you make informed financial decisions.

1. Intrinsic Value Calculator

Value investing tool to calculate intrinsic value of stocks using DCF and Graham's formula.

Calculate Now →
2. CAGR Calculator

Calculate Compound Annual Growth Rate for your investments with detailed year-by-year breakdown.

Calculate Now →
3. Reverse CAGR Calculator

Find the initial investment needed to achieve your target corpus with desired CAGR and time period.

Calculate Now →
4. XIRR Calculator

Calculate Extended Internal Rate of Return for irregular investments and withdrawals.

Calculate Now →
5. SIP Calculator with Inflation & Step-Up

Advanced SIP calculator accounting for inflation, step-up investments, and real returns.

Calculate Now →
5. Trading Position Calculator

Position size calculator for Equity (intraday/delivery) & F&O. Get quantity, margin, breakeven, and full brokerage + STT/GST charges with broker cost comparison.

Calculate Now →
6. Recurring Deposit Calculator

Calculate maturity amount for RD investments with monthly contributions and compound interest.

Calculate Now →
7. Monte Carlo Retirement Calculator

Advanced retirement planning with probability analysis using Monte Carlo simulations.

Calculate Now →
8. Quantum Retirement Calculator

Comprehensive retirement planning for Indian investors with inflation-adjusted returns.

Calculate Now →

💡 All calculators are free, regularly updated with latest regulations, and designed specifically for Indian financial markets.