Which is better, EMI increase or prepayment?
It depends on cash flow stability. EMI increase is disciplined, prepayment is flexible.
Calculator
EMI Increase vs Prepayment Calculator
Compare two popular borrower strategies: disciplined EMI increase versus periodic lump-sum prepayment from annual surplus.
Current EMI: ₹31,266
Strategy A: EMI increase
New EMI₹39,266
Interest₹22,49,815
Closure147 mo
Saved vs baseline₹17,53,944
Strategy B: Yearly prepayment
Yearly lump sum₹96,000
Interest₹23,50,433
Closure151 mo
Saved vs baseline₹16,53,327
FAQs
Can I use both strategies together?
Yes, hybrid strategy often performs best in real life.
What if my income is variable?
Flexible prepayment may suit variable income better than fixed EMI hike.
How should I choose practical strategy?
Pick the option you can sustain for years, not just for one quarter.