Loan EMI & Home Loan Prepayment Optimizer

Calculate your monthly loan payments, total interest burden, and how much you can save with small monthly prepayments.

💡 Home Loan Prepayment Trick

Paying just ₹2,000 to ₹5,000 extra per month on a ₹40 Lakh home loan can save you up to ₹12 Lakhs in total interest and reduce your 20-year loan tenure by over 4 years!

Run Live Prepayment Simulator

The Mathematical Amortization Formula

Indian commercial banks calculate loan installments using the reducing-balance amortization formula:

EMI = [P × r × (1 + r)^n] / [(1 + r)^n – 1]

P: Principal Loan Amount
r: Monthly Interest Rate (Annual Rate / 12 / 100)
n: Loan Tenure in Months (Years × 12)

Tax Benefits on Home Loans

Borrowers opting for the Old Tax Regime can claim substantial deductions under the Income Tax Act:

Section 24(b): Up to ₹2,00,000 per financial year on home loan interest payments for self-occupied properties.
Section 80C: Up to ₹1,50,000 per financial year on principal repayment and stamp duty charges.