EMI Calculator

EMI is a fixed payment you make each month until the loan is repaid. Each installment covers interest on the outstanding balance plus a portion of principal. Because interest is calculated on the remaining balance, the interest component falls over time while the principal component rises—even though the EMI amount stays the same for fixed-rate loans.

Banks use the reducing-balance method: interest is charged only on what you still owe, not the original loan amount. That is why prepaying early saves significant interest compared to waiting until the end of the tenure.

The standard reducing-balance EMI formula accounts for monthly compounding of interest on the outstanding loan balance.

Example: ₹50 lakh at 8.5% for 20 years (240 months) gives r ≈ 0.007083 and EMI ≈ ₹43,391. Total payment ≈ ₹1.04 crore, of which ~₹54 lakh is interest.

The yearly schedule shows how much principal and interest you pay each year and the closing balance. In year one of a long home loan, interest often exceeds principal; by the final years, most of each EMI goes to principal.

Use the chart to visualize balance decline. If you plan a partial prepayment, compare total interest before and after to see the benefit of paying early.

Compare EMI across tenures: a shorter loan raises monthly payment but sharply cuts total interest. Check affordability using EMI as a share of monthly income—many lenders cap EMI at 40–50% of net income.

Factor in processing fees, insurance, and tax benefits (e.g. home loan interest deduction in India) separately. This tool gives the core math; your bank’s sanction letter may include additional charges.