Fill in the details and click Calculate to see your results.
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📘 About the One Extra EMI Every Year Calculator
Pay one extra EMI a year, for example from your annual bonus, and the extra goes straight to reducing your principal. Because interest is charged on the outstanding balance, every rupee prepaid early saves interest for the rest of the loan.
On a ₹30 lakh, 20-year home loan at 8.5%, one extra EMI a year closes the loan more than 3 years early and saves over ₹6 lakh of interest. Start later in the loan and the saving is smaller, which the 'start from year' box shows.
✏️ Worked examples
₹30 lakh, 8.5%, 20 years, 1 extra EMI a year
You get| Loan closes in | 16 yrs 9 mo instead of 20 yrs |
| Tenure reduced by | 3 yrs 3 mo |
| Interest saved | ₹6,17,484 |
| Total interest | ₹26,30,844 (was ₹32,48,327) |
| Regular EMI | ₹26,035 |
| Total extra EMIs paid | ₹4,16,555 |
3 yrs 3 mo; ₹26,30,844 (was ₹32,48,327).
Try this example →₹50 lakh, 9%, 25 years, starting in year 3
You get| Loan closes in | 20 yrs 6 mo instead of 25 yrs |
| Tenure reduced by | 4 yrs 6 mo |
| Interest saved | ₹15,34,880 |
| Total interest | ₹60,53,066 (was ₹75,87,945) |
| Regular EMI | ₹41,960 |
| Total extra EMIs paid | ₹7,55,277 |
4 yrs 6 mo; ₹60,53,066 (was ₹75,87,945).
Try this example →🧭 How to use this calculator
What you enter
- Loan Amount (₹)
- Interest Rate (% p.a.)
- Loan Tenure (yrs)
- Extra EMIs Every Year (EMIs)1 = one extra EMI each year (e.g. from your bonus). Use 0.5 for half an EMI.
- Start From YearThe year of the loan in which you start paying the extra EMI.
What you get
- Loan closes in
- Tenure reduced by
- Interest saved
- Total interest
- Regular EMI
- Total extra EMIs paid
💡 Prepay or invest?
- Prepaying a loan gives a guaranteed, tax-free 'return' equal to its interest rate (8.5% here). An investment has to beat that after tax and risk.
- Keep an emergency fund of 3–6 months' expenses before prepaying.
- Old tax regime: home loan interest up to ₹2 lakh a year (Section 24(b)) and principal under Section 80C are deductible, which lowers the effective rate. The new regime gives no deduction for a self-occupied home.
- Floating-rate home loans to individuals carry no prepayment or foreclosure charge (RBI rules). Fixed-rate, personal and car loans often charge 2–5%.
❓ Frequently asked questions
How much does one extra EMI a year reduce my home loan?
Roughly 3–4 years off a 20-year loan at 8–9%, depending on the rate. The higher the rate and the longer the tenure, the bigger the effect.
Should I pay the extra EMI at the start or the end of the year?
The earlier the better, because the principal falls sooner. This calculator assumes the extra EMI is paid at the end of each loan year, which is slightly conservative.
Will my EMI change if I prepay?
Banks usually keep the EMI the same and shorten the tenure, which saves the most interest. You can ask them to reduce the EMI instead — see the Loan Prepayment Calculator.