Model single and multiple part-payments, annual bonus injections, and compare 'Reduce Tenure' vs 'Reduce EMI' side-by-side.
Interactive breakdown of balance, interest, and prepayment impact
| Period | EMI Paid | Principal Paid | Extra Prepayment | Interest Paid | Total Payment | Remaining Balance |
|---|
Making partial prepayments on your mortgage directly hacks the front-loaded amortization schedule. By eliminating portions of principal in years 1 to 5, you avoid paying up to 3x that amount in compounding interest charges over the remaining life of the mortgage.
A part-prepayment (or partial prepayment) is an ad-hoc or scheduled lumpsum payment made towards your loan principal over and above your regular monthly EMIs. The entire sum reduces your outstanding principal balance directly.
Under RBI guidelines for Indian banks and standard US/UK mortgage rules, there is no limit on how many times you can make part prepayments on floating-rate home loans.
The earlier in your loan tenure you prepay, the higher your interest savings. Making part prepayments right before the monthly interest accrual cycle (usually at the start of the month) maximizes interest deduction.