Home Loan Part Payment Calculator
Make a lump-sum now and see how it changes your EMI or the remaining tenure — and how much interest you’ll save.
Formulas used
After part-pay: P′ = max(P − L, 0). Reduce Tenure → keep EMI; Reduce EMI → keep n.
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Home Loan Part Payment Calculator – What It Is and Why It Matters
A home loan part payment (also called prepayment) is when you pay a lump-sum amount towards your outstanding loan principal, over and above your regular EMIs. Even a single part-payment can reduce your overall interest burden, shorten your loan tenure, or lower your EMI — depending on how you choose to apply it.
This calculator helps you instantly see the impact of a part-payment, so you can make smarter financial decisions about your housing loan.
Part-Payment Formula
When you make a lump-sum part-payment (L), the outstanding principal (P) reduces:
New Principal (P′) = P − L
- If you choose Reduce Tenure → EMI stays the same, tenure reduces.
- If you choose Reduce EMI → Tenure stays the same, EMI reduces.
The EMI itself is calculated using the standard formula:
EMI = [P × r × (1+r)^n] / [(1+r)^n − 1]
where:
- P = Principal loan amount
- r = Monthly interest rate (annual ÷ 12 ÷ 100)
- n = Remaining tenure in months
How Part-Payment Helps
A lump-sum part-payment can:
- Cut down total interest paid by reducing your outstanding principal early.
- Shorten your tenure by several months or years, if you keep EMI constant.
- Ease your monthly burden by lowering your EMI, if you keep tenure constant.
For example, on a ₹25 lakh loan at 8.5% for 15 years, a part-payment of ₹2 lakh in year 5 could save you ₹4–5 lakh in interest and cut your tenure by 12–18 months.
Who Should Use This Tool?
- Existing home loan borrowers planning lump-sum repayments
- Financial planners and advisors comparing repayment strategies
- Young professionals exploring early loan closure strategies
- Families planning to invest bonuses, salary hikes, or inheritances in reducing debt
Why Use This Home Loan Part Payment Calculator?
- Instantly shows new EMI, new tenure, and interest savings
- Lets you compare Reduce Tenure vs Reduce EMI options
- Easy-to-use, 100% browser-based, no signup required
- Works on both desktop and mobile
- Transparent formulas with step-by-step breakdown
Save Lakhs, Close Loans Faster
Manual calculations can be tedious and prone to errors. This free calculator gives you a clear picture of how much you’ll save — empowering you to make better prepayment decisions and become debt-free sooner.
Realism Note
This calculator assumes constant interest rates and does not account for bank-specific prepayment penalties, changing rates, or step-up EMIs. Actual savings may vary based on your loan terms.
Disclaimer
This calculator provides rough estimates for educational purposes. Always check with your bank or housing finance company for exact repayment schedules, terms, and charges before making financial decisions. Indiagraphs is not responsible for any decisions taken solely on the basis of this tool.
Home Loan Part Payment Calculator – Frequently Asked Questions
1. What is a part-payment in home loans?
A lump-sum amount you pay towards your outstanding principal, in addition to your regular EMIs.
2. How is part-payment different from foreclosure?
Part-payment reduces your principal but the loan continues.
Foreclosure means paying the entire remaining loan balance in one go.
3. Is there any limit to part-payment?
Most banks allow multiple part-payments, but may set a minimum amount (e.g., ₹25,000 or one EMI).
4. Does part-payment reduce EMI or tenure?
You can choose: keep EMI same (tenure reduces) or keep tenure same (EMI reduces).
5. Are there penalties for part-payment?
On floating-rate home loans (post-RBI guidelines), banks cannot charge prepayment penalties. On fixed-rate loans, some charges may apply.
6. Will part-payment affect my CIBIL score?
Making part-payments improves your repayment profile but does not harm your credit score. Timely EMI payments are still crucial.
7. Should I invest surplus money or make a part-payment?
It depends on your expected investment returns vs. your home loan interest rate. This calculator helps you see the loan savings clearly.
8. Can part-payment make me debt-free faster?
Yes — consistent part-payments can help you close your loan years before schedule, saving lakhs in interest.