EMI Calculator
Your EMI is fixed, but what it's doing changes every single month. Early on, most of the payment is interest and barely any touches the loan. Late on, it's almost all principal. That imbalance is why a 20-year home loan can cost you more in interest than the amount you borrowed.
Enter your numbers and look at two things: the EMI, and the total interest. Then drop the tenure by five years and look again. The EMI rises a little; the interest falls a lot. That single comparison is worth more than any advice anyone will give you about loans.
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| Year 1 | ₹56,181 | ₹2,67,720 | ₹29,43,819 |
| Year 2 | ₹61,452 | ₹2,62,450 | ₹28,82,367 |
| Year 3 | ₹67,216 | ₹2,56,685 | ₹28,15,151 |
| Year 4 | ₹73,521 | ₹2,50,380 | ₹27,41,630 |
| Year 5 | ₹80,418 | ₹2,43,483 | ₹26,61,211 |
| Year 6 | ₹87,962 | ₹2,35,939 | ₹25,73,249 |
| Year 7 | ₹96,213 | ₹2,27,688 | ₹24,77,036 |
| Year 8 | ₹1,05,239 | ₹2,18,662 | ₹23,71,797 |
| Year 9 | ₹1,15,111 | ₹2,08,790 | ₹22,56,686 |
| Year 10 | ₹1,25,909 | ₹1,97,992 | ₹21,30,777 |
| Year 11 | ₹1,37,720 | ₹1,86,181 | ₹19,93,056 |
| Year 12 | ₹1,50,640 | ₹1,73,262 | ₹18,42,417 |
| Year 13 | ₹1,64,771 | ₹1,59,131 | ₹16,77,646 |
| Year 14 | ₹1,80,227 | ₹1,43,674 | ₹14,97,419 |
| Year 15 | ₹1,97,134 | ₹1,26,768 | ₹13,00,285 |
| Year 16 | ₹2,15,626 | ₹1,08,275 | ₹10,84,659 |
| Year 17 | ₹2,35,854 | ₹88,048 | ₹8,48,805 |
| Year 18 | ₹2,57,978 | ₹65,923 | ₹5,90,827 |
| Year 19 | ₹2,82,178 | ₹41,723 | ₹3,08,649 |
| Year 20 | ₹3,08,649 | ₹15,253 | ₹0 |
How it works
- 01EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan amount, r the monthly rate, and n the number of months.
- 02Every month, interest is charged on the balance still outstanding. Whatever is left of your EMI after that goes to reducing the loan — which is why the split shifts steadily in your favour.
- 03The schedule below shows exactly what happens each year: how much went to interest, how much cleared the loan, and what you still owe.
Frequently asked
Should I choose a longer tenure for a lower EMI?+
Only if the shorter EMI genuinely does not fit your budget. On a ₹30 lakh loan at 9%, going from 15 years to 25 saves about ₹4,000 a month and costs you roughly ₹14 lakh in extra interest. Take the longest tenure you can safely afford, then prepay aggressively — that gives you the low required payment and the low total cost.
Fixed or floating rate?+
Floating is usually cheaper over the life of a long loan and lets you prepay without penalty, which is a right regulators protect for floating-rate retail borrowers. Fixed buys certainty at a price. For a home loan most borrowers are better off floating.
What is a good EMI-to-income ratio?+
Keep all EMIs together under 40% of take-home pay, and a home loan alone under 30%. Lenders will happily approve more. Their downside is a recovery process; yours is your life.
Why is my bank's EMI slightly different?+
Rounding, processing fees folded into the principal, insurance bundled with the loan, or a part-month at the start. The difference should be small — if it is not, ask for the amortisation schedule in writing.
Does paying one extra EMI a year help?+
Dramatically. One extra EMI annually on a 20-year loan typically clears it about four years early and saves several lakh in interest. Use the prepayment calculator to see your exact numbers.