Home Loan

Plan your Home Loan with a Home Loan EMI calculator


When you take out a mortgage, you choose the term length, such as 30 years or 15 years. Then you make monthly payments during that period until the end of your loan. 

If the monthly payment isn’t enough to cover your loan amount by the end of your term, this means, you are behind on your home loan calculator with prepayment. You need to make up the difference. 

Use this article to find out how much interest you could save by paying extra each month so you don’t have to pay an excess balance at the end of your mortgage period.

Home loans and their types

A home loan is any type of financing that is used to buy, build, or improve a house. There are many types of home loans, but in general, there are three main categories:

  1. Fixed-rate loans: A fixed-rate mortgage is where the interest rate stays the same for the entire term of the loan. There are no surprises when it comes time to refinance or pay off your mortgage. This type of mortgage also typically requires monthly payments that are constant throughout the life of the mortgage. They do not change as a result of fluctuations in market interest rates.
  2. Adjustable-rate loans: An adjustable-rate mortgage, or ARM, is an interest-only mortgage. It has an interest rate and monthly payments change over time. ARMs are often used for mortgages. They offer lower initial rates than fixed-rate mortgages. The result is that borrowers end up paying more for their loans in the long run. But may benefit from lower monthly payments in the short term.
  3. Interest-only loans: Interest-only loans are becoming increasingly popular. This is because of their lower monthly payments and the increased equity borrowers buildup in their homes. However, interest-only loans may not be for everyone. It is important to understand the risks associated with this type of mortgage before signing on the dotted line. 

The basics of a home loan calculator with prepayment

A home loan calculator is an online tool that allows you to determine the amount for the prepayment option. Most online calculators provide you with four crucial factors when you opt for a prepayment. They are:

  • The amount of EMI saved
  • Amount of EMI due
  • Amount of revised EMI
  • Revised loan tenure

Online calculators are easy to use and help make calculations simple. All you need to do is enter your home loan details, such as:

  • Outstanding home loan amount
  • Home loan tenure
  • Interest rate
  • Prepayment amount you wish to pay

Once these details are filled in, you can calculate and find out the overall savings from the loan pre-payment option. 

How a home loan calculator with prepayment can help you save money

If your goal is to pay off your mortgage as quickly as possible, then knowing how much to put towards your mortgage each month is important. 

A home loan calculator that includes an EMI calculator helps you figure out how much of your monthly payment will go towards the principal and how much will go towards interest and fees. This ultimately determines how long it will take to pay off the mortgage.

There are various types of calculators on the market, so be sure to do research before choosing one. Some factors you may want to consider when selecting an EMI calculator are cost, features offered, and ease of use.

Tips for using a home loan calculator with prepayment

The most important thing about calculating your mortgage payments is to do it correctly. Many people make mistakes that end up costing them more in the long run. If you have an online calculator on your smartphone or laptop, this should be much easier as most are set up for ease of use and provide explanations for each type of payment.

A simple online calculator is all you need to get an idea of how much interest, monthly payments and total borrowing cost will be when taking into account compound interest and the repayment period. 

  • Just plug in your details on the EMI Calculator and click ‘Calculate’. 
  • You should aim to make at least four times the payment each month as even though it will take longer, it will reduce the total borrowing cost.
  • If possible, try to set up a fixed direct debit from your bank account that’s large enough to cover the extra required payment amount. 
  • All online calculators come with pre-set parameters so you don’t have to worry about calculations. But if you are unsure what they mean then click help for explanations or ask someone for help.
  • There are also other tools available to work out repayments such as a mortgage calculator. It takes into consideration rental income, investment returns and other factors.
  • Whatever method you use, remember it is always better to pay off more than what you owe. This will keep costs down over time and stop you from getting further into debt.

Other ways to save money on your home loan

One way to save money on your home loan is to use an EMI Calculator Online to calculate your monthly payment and figure out how much interest you could end up saving by paying off your mortgage early. 

A second strategy for cutting down on the amount of interest you owe on your home loan is to increase your payments from the beginning of the term. A Home loan calculator will give you an estimate of what extra payments would do for reducing your total debt if done from day one. 

The third strategy for cutting down on the amount of interest owed is to buy fewer houses than needed for its purpose. That way, less interest will be accumulated over time.


Home loan calculators are easy to use and give you an idea of how much it will cost for your monthly payments based on the initial down payment and interest rate. The best part about using one is that it also includes the option of paying off your mortgage in full by adding the desired amount to your current balance each month. Piramal Finance can assist you in the journey to your dream home. Fill out the form and get started now.