Multi-Year EMI Planner
All math runs on your device — nothing is sent or saved. Last updated: September 2026.
Base EMI
₹25,357
Interest ₹20,64,200 · 180 months
Ends in
92 months
Saves 88 months
Interest saved
₹10,89,472
Total ₹9,74,727
How to use this calculator
- Move a slider — or tap the number box and type your own loan, rate and tenure.
- Type your yearly extra lump in each Year row (1L, 2L or any amount). Use Fill buttons for quick test.
- Toggle Reduce tenure vs Reduce EMI on top to compare both outcomes.
- Want only next year? Type your current remaining balance as Loan amount and set tenure to remaining years — or edit a single Year row below.
Year-by-year: edit prepay, see remaining
Type any amount per year. Balance, interest and tenure/EMI update live.
| Year | Extra lump (₹) | Principal | Interest | Balance left | Months used |
|---|---|---|---|---|---|
| Year 1 | ₹2,45,171 | ₹2,19,109 | ₹22,54,829 | 12m | |
| Year 2 | ₹2,68,170 | ₹1,96,110 | ₹19,86,659 | 24m | |
| Year 3 | ₹2,93,326 | ₹1,70,954 | ₹16,93,332 | 36m | |
| Year 4 | ₹3,20,842 | ₹1,43,438 | ₹13,72,490 | 48m | |
| Year 5 | ₹3,50,940 | ₹1,13,340 | ₹10,21,550 | 60m | |
| Year 6 | ₹3,83,860 | ₹80,420 | ₹6,37,690 | 72m | |
| Year 7 | ₹4,19,869 | ₹44,411 | ₹2,17,821 | 84m | |
| Year 8 | ₹2,17,821 | ₹6,946 | ₹0 | 92m |
What is this tool?
This multi-year planner extends the main EMI calculator. Enter your loan once, then type a different lump for every year (for example Rs. 1 lakh in year 1, Rs. 2 lakh in year 2) and see balance left, interest saved and whether tenure or EMI drops — year by year.
Common multi-year questions
Should I reduce EMI or tenure every year?
Reducing tenure every year saves the most interest. Reducing EMI lowers monthly burden instead.
Is there a prepayment penalty in 2026?
No charges on individual floating-rate loans sanctioned or renewed on or after 1 January 2026.
Is paying 1-2 lakh every year better than one big payment?
Yes, every early rupee kills future interest. Small yearly payments beat one late big payment.
What banks don't tell you
Cutting tenure beats cutting EMI. The same extra money finishes the loan early instead of shrinking instalments.
No prepayment penalty since January 2026 on individual floating-rate loans, with no lock-in period.
Compare full yearly cost, not headline rate. Add processing fee plus 18% GST before choosing a lender.
Read the full Real Loan & EMI Guide →
Walkthrough: how ₹1L/year saves ₹14.6 lakh →
Estimate for guidance only — not financial advice. Confirm rates with your bank or RBI before deciding.
Worked example: ₹30 lakh home loan at 8.5% for 20 years
- EMI = ₹26,035; total repaid ≈ ₹62.5 lakh, of which ≈ ₹32.5 lakh is interest.
- Paying one extra EMI (₹26,035) every year, while keeping the same EMI, cuts the tenure by roughly 3–4 years.
- A 5% EMI increase each year after a salary hike can close the loan in around 12–13 years instead of 20.
How the Multi-year EMI planner works: the rules
- Every prepayment goes fully towards principal, so interest for all future months falls.
- Floating-rate home loans to individuals carry no prepayment charge under RBI rules.
- When you prepay, ask the bank to reduce the tenure rather than the EMI if you want the biggest saving.
Multi-year EMI planner: frequently asked questions
How much does a yearly prepayment save on a home loan?
On a ₹30 lakh, 20-year loan at 8.5%, one extra EMI a year saves several lakh rupees of interest and several years of EMIs.
Should I prepay my home loan or invest?
Compare the loan rate with your expected post-tax return. If the loan costs 8.5% and safe investments give less after tax, prepaying is usually better.
Is it better to reduce EMI or tenure?
Reducing tenure saves more interest; reducing EMI gives breathing room each month.
Are there charges for prepaying a floating-rate home loan?
No, RBI does not allow them for individuals' non-business loans.
Does prepayment affect my tax benefit?
Under the old regime, less interest means a smaller interest deduction, but the saving in actual interest is usually much larger.
When is the best time to prepay?
Early in the loan, when most of each EMI goes to interest.
Official sources: RBI — Fair practices code for lenders· Last reviewed 2026-10-30. Results are estimates — confirm final figures with your lender, insurer or tax adviser.