Mortgage Overpayment Calculator
This mortgage overpayment calculator shows what happens when you add a fixed extra amount to every monthly EMI from today onward — how much interest it saves over the life of the loan, and how much sooner you'll be debt-free. Enter your loan details and the extra amount you can afford each month to see the real, compounding impact of consistent overpayments.
Your original home loan amount, or your current outstanding balance if the loan has been running a while.
The rate on your current home loan.
How many years are left on your loan.
The additional fixed amount you'll add to every monthly payment, on top of your normal EMI.
Interest saved
Log in to save₹14,13,768
The total interest you avoid over the loan's life by paying more than required every month — e.g. ₹14,13,768 saved from a steady ₹5,000/month overpayment.
How many years sooner you'll be mortgage-free at this overpayment level, compared to sticking to the required payment only.
How long the mortgage will actually take to clear once the overpayment is included — compare against the remaining term you entered.
Total interest you'll pay with the overpayment included, versus what the mortgage would have cost without it.
How to use this mortgage overpayment calculator
- 1Mortgage balance: your current outstanding balance, not the original loan amount, for the most accurate result if the loan has been running a while.
- 2Interest rate and remaining term: use the figures from your current loan statement.
- 3Extra monthly overpayment: start with an amount you can sustain every month without strain — even a modest, consistent overpayment compounds into a large saving over a 20-year loan.
- 4On floating-rate home loans, RBI rules mean there's no prepayment penalty for individuals, so there's no allowance to check before committing to a number here.
Understanding your results
Interest saved is the total interest you avoid paying over the life of the loan by consistently paying more than required each month. Time saved shows how much sooner the loan is paid off — every rupee of overpayment goes straight to principal, so the loan balance shrinks faster than scheduled, which snowballs into an increasingly large reduction in future interest. Compare new total interest against your current loan's stated total interest to see the full picture side by side.
The formula
Simulated month-by-month: Balanceₙ = Balanceₙ₋₁×(1+r) − (EMI + Extra)Each month, the balance accrues one month's interest and then the original required payment plus your fixed extra amount is subtracted — a larger bite out of the balance every single month than the loan was originally scheduled for. The calculator simulates this month by month until the balance reaches zero, which is the only reliable way to capture how a small, steady overpayment compounds into large savings over hundreds of months, since the effect isn't expressible as one simple formula.
A worked example
A ₹50,00,000 home loan at 8.5% with 20 years remaining, overpaying by ₹5,000 every month: the loan is paid off about 53 months (over 4 years) early, saving roughly ₹14,13,768 in interest. Double the overpayment to ₹10,000 a month on the same loan, and the payoff moves forward by 85 months (over 7 years), saving about ₹22,19,194 — proportionally more than double the saving from double the overpayment, because the extra principal reduction compounds earlier and earlier as the balance shrinks faster.
Things to know
In India, RBI rules bar prepayment penalties on floating-rate home loans for individual borrowers, so regular overpayments (locally often called 'part-prepayments') are unrestricted — there's no allowance to worry about, unlike some fixed-rate loans elsewhere. Just confirm with your lender that extra payments are applied straight to principal rather than held as an early next-EMI credit. Fixed-rate home loans and other loan types may still carry a prepayment or foreclosure fee, so check your agreement before committing to a large one-off payment.
Frequently asked questions
Can I overpay my home loan without a penalty?+
On floating-rate home loans, yes — RBI rules bar prepayment penalties for individual borrowers, so there's no allowance to check. Fixed-rate loans, and other loan types like car or personal loans, may still charge a 2–5% foreclosure fee, so check your specific agreement.
Is it better to overpay my loan or save the money instead?+
Compare your loan's interest rate against the after-tax return you'd earn saving instead. Overpaying an 8.5% loan is a guaranteed, tax-free 8.5% return; if your investments reliably beat that after tax, saving may be the better choice, but few safe options do.
Does overpaying reduce my EMI or my loan term?+
This depends on your lender's policy — most keep your required EMI the same and let overpayments shorten the term (which this calculator models, and which saves the most total interest); some lenders let you choose to instead reduce the EMI while keeping the original term.
What is a good amount to overpay each month?+
Any consistent amount helps, but the earlier and larger the overpayment, the more it saves, since it compounds against a bigger remaining balance. Even ₹2,000–₹5,000 a month on a typical Indian home loan can save lakhs and multiple years — use the calculator above with your own numbers.
Should I overpay my home loan or pay off other debt first?+
Pay off higher-interest debt (credit cards, personal loans) before overpaying a home loan — home loan rates are usually the lowest form of debt you hold, so other debts cost you more per rupee and should be cleared first.
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