Home loan part payment calculator: estimate tenure and interest saved
A part-payment reduces outstanding principal. If you keep your EMI unchanged, the loan may finish sooner; if you reduce your EMI instead, monthly cash flow improves but the tenure may remain similar. Use the calculator below with your actual outstanding balance and loan terms.
RBI update — 7 October 2026: the Monetary Policy Committee increased the repo rate by 25 basis points, from 5.25% to 5.50%, and changed its stance to calibrated tightening. This is the RBI policy rate, not automatically your home-loan rate. The impact on an EBLR-linked loan depends on the lender's benchmark transmission and your contractual reset date; MCLR and other benchmark-linked loans follow their own contractual mechanisms. Read the RBI MPC resolution.
How much could a part-payment save?
Compare the estimated remaining loan cost with and without a one-time part-payment, assuming the interest rate and current EMI stay unchanged.
The default rate of 8.15% is illustrative only (5.50% repo + an assumed 2.65% spread). The 2.65% spread is not prescribed by RBI. Replace the defaults with your own loan figures.
| Estimate | Without part-payment | After part-payment |
|---|---|---|
| Principal at comparison point | ₹50,00,000 | ₹45,00,000 |
| Monthly EMI used | ₹42,500 | ₹42,500 |
| Estimated months to repay | 238 months | 188 months |
| Estimated remaining interest | ₹50,74,795 | ₹34,73,097 |
Estimated interest saved: ₹16,01,698. Estimated tenure reduced by 50 months (4.2 years), if you keep the EMI unchanged.
Estimates assume monthly interest at the entered rate, EMI stays unchanged, and the part-payment is applied immediately to principal. Actual bank calculations may differ due to daily accrual, reset events, fees, payment timing and lender rules. If the EMI does not cover monthly interest, the calculator will flag it.
Interest savings are estimates, not guaranteed outcomes. This calculator models a constant rate; it does not forecast future RBI decisions or automatically apply the 7 October repo increase to your loan.
Keep the EMI, or reduce it?
After a part-payment most banks let you choose: keep the EMI and finish sooner, or keep the end date and pay less each month. Keeping the EMI saves far more interest. Reducing it helps cash flow. Ask your bank which it will apply — the default is often the one that saves less.