Home Loan Tenure Calculator

The Reducing Balance Method (used by most Indian banks) calculates interest on the remaining principal amount each month, so interest decreases as you pay down the loan. The Fixed Interest Method calculates interest on the original loan amount for the entire tenure, resulting in significantly higher interest payments over time.

You can reduce your loan tenure by: 1) Increasing your EMI amount, 2) Making partial prepayments when possible, 3) Negotiating for a lower interest rate, or 4) Choosing a shorter tenure when taking the loan. Even small increases in EMI can significantly reduce your total tenure.

Financial experts generally recommend that your total EMI payments (including home loan) should not exceed 40-50% of your monthly take-home salary. This ensures you maintain financial flexibility for other expenses and emergencies.

Longer tenures result in lower EMIs but significantly higher total interest payments. For example, a ₹50 lakh loan at 8.5% for 20 years pays ₹51.8 lakh in interest, while the same loan for 15 years pays ₹38.2 lakh in interest - saving ₹13.6 lakh with just 5 fewer years.

Most banks allow you to request a change in tenure through loan restructuring, which may involve processing fees. You can typically request to either increase tenure (to lower EMIs) or decrease tenure (to pay off faster). Some banks also offer flexible EMI options where you can vary payments within certain limits.