Mortgage Payoff Calculator
Estimate how much money and time you can save by making extra payments on your mortgage. Even small additional contributions applied to your principal can drastically shorten your loan term and reduce total interest paid.
Impact Visualizer
By adding extra payments:
- Add ₹2,000/mo: Save ₹5,00,000 Interest (3 Years saved)
- Add ₹10,000/mo: Save ₹18,00,000 Interest (8 Years saved)
How to Use
- Enter your **Current Loan Balance**.
- Input the **Interest Rate**.
- Enter **Remaining Years** on your loan.
- Input a planned **Extra Monthly Payment**.
- See your new payoff date and total savings.
Benefits
- **Freedom:** Become debt-free years ahead of schedule.
- **Savings:** Save lakhs of rupees in interest that would otherwise go to the bank.
- **Equity:** Build ownership in your home faster.
- **Flexibility:** Unlike a shorter loan term, extra payments are voluntary.
Frequently Asked Questions
What is principal prepayment?
Principal prepayment is paying more than your scheduled EMI. This extra amount goes 100% towards reducing your loan balance, bypassing interest entirely.
Is it better to invest or pay off mortgage?
It depends on the rate. If your mortgage rate (e.g., 9%) is higher than safe investment returns (e.g., FD at 7%), paying off the loan gives a better guaranteed return. If stock market returns are higher (12%), investing might be mathematically better, but risky.
Are there penalties for prepayment?
In India, floating-rate home loans for individuals have ZERO prepayment penalties by law (RBI mandate). Fixed-rate loans may still have penalties.