See how much interest you can save by adding extra to your monthly EMI.
Standard EMI
₹43,391
Total interest: ₹54.1 L · 20 years
With +₹5,000/mo
₹48,391
Interest: ₹40.2 L · 15.6 years
By adding ₹5,000/month
You save ₹13.9 L
Loan closes 4.4 years earlier
Felix analyses your loan, recommends prepayment strategy, and helps you decide between prepay vs invest.
Download Richify — It's FreeIf your home loan interest rate is 8.5% and you can earn 12% from equity SIPs, mathematically investing wins. But consider: loan interest is certain cost, investment returns are uncertain. A balanced approach: prepay enough to reduce tenure to 15 years, invest the rest via SIP.
Banks typically approve loans where EMI is up to 50% of net income. But financial planners recommend keeping EMI at 30-35% of take-home salary. This leaves room for savings, emergencies, and lifestyle without financial stress.
Both work — lumpsum prepayments (bonus, increment) have the biggest impact on total interest. But increasing EMI by ₹2,000-5,000 annually (salary increment) is easier to sustain and steadily reduces your tenure. Many banks allow step-up EMI plans.
For floating rate home loans (most Indian home loans), RBI has mandated ZERO prepayment charges since 2014. Fixed rate loans may have 2-3% prepayment penalty. Always choose floating rate to maintain prepayment flexibility.