EMI Calculator
Calculate your monthly loan EMI, total interest and amortization.
What this calculator does
Loans feel abstract until you see the actual amortisation schedule. Then something clicks: for the first several years of a home loan in India, almost every rupee of your EMI is going toward interest, and only a tiny sliver is chipping away at the principal. This is normal, and it's exactly why 'total interest paid' is often shockingly close to (or higher than) the loan amount itself.
This EMI calculator does three useful things. First, it gives you the monthly payment — the number you'll live with. Second, it shows the total interest cost over the tenure — the number that should influence how much loan you actually take. Third, and most importantly, it lets you play with the tenure to see how much interest a shorter loan saves.
Practical example: ₹50 lakh home loan at 9%. Over 25 years, EMI is ~₹42,000 and total interest is ~₹75 lakh. Over 15 years, EMI jumps to ~₹51,000 (only 21% higher) but total interest drops to ~₹41 lakh. That's ₹34 lakh of your life saved for a ₹9,000 higher EMI.
EMI = P × r × (1+r)^n / ((1+r)^n − 1)Variables explained
- Principal (P)
Loan amount you actually borrow.
- Interest rate (r)
Annual interest, converted to monthly (r/12) inside the formula. In India: home loan 8.5-10%, car loan 9-12%, personal loan 11-22%, credit card 36-42%.
- Tenure (n)
Number of monthly instalments. Longer tenure = lower EMI but much higher total interest.
Worked example: ₹30 lakh home loan at 9% for 20 years
P = ₹30,00,000 · r = 9%/12 = 0.75% per month · n = 240 months.
EMI = P × r × (1+r)^n / ((1+r)^n − 1) = 30,00,000 × 0.0075 × (1.0075)^240 / ((1.0075)^240 − 1)
(1.0075)^240 ≈ 6.009. EMI ≈ 30,00,000 × 0.0075 × 6.009 / 5.009 ≈ ₹27,000.
Total paid: ₹27,000 × 240 = ₹64.8 lakh. Interest paid: ₹34.8 lakh — more than the loan itself.
The interest number is the one that matters
When you calculate an EMI, most people fixate on the monthly payment. But look at the total interest paid over the loan tenure — that's the real cost of the debt. On a 25-year home loan, you often pay more in interest than the property cost.
Run the calculator with three tenures: the one the lender is offering, one 5 years shorter, and one 10 years shorter. The EMI goes up, but the total interest often drops by lakhs.
Prepayment is the other superpower. Any lumpsum you throw at the principal early in the loan cuts a disproportionate amount of interest. A single ₹1 lakh prepayment in year 2 of a 20-year home loan can save ₹3-4 lakh in interest and shave off 8-12 months.
Watch out for the two things lenders quietly assume: that you'll take the full tenure, and that you won't prepay. Break both assumptions and the math shifts massively in your favour.
Common mistakes
- ✗Only looking at the EMI, not the total interest cost.
- ✗Choosing the longest tenure to lower the EMI, then never prepaying.
- ✗Ignoring Section 24 (up to ₹2 lakh/year home loan interest deduction) when comparing rent vs buy.
- ✗Assuming a floating rate will stay where it is — it usually rises during your loan life.
- ✗Not shopping around. A 0.5% rate difference on a ₹50 lakh loan is ~₹6 lakh over 20 years.
Frequently asked questions
Should I prepay my home loan or invest that money?+
Rough rule: if your home loan rate is above your expected post-tax investment return, prepay. If it's below (as often happens with Section 24 benefit), invest the surplus. Run both scenarios before deciding.
What's the impact of a rate hike on my EMI?+
On floating-rate loans, banks usually keep the EMI the same and extend the tenure. A 0.5% hike on ₹50 lakh over 20 years extends the tenure by 20-30 months.
Can I switch to a lower-rate lender?+
Yes — via loan balance transfer. It usually costs 0.3-0.5% of the outstanding, so only worth it if the new rate is 0.5% or more lower and you have 8+ years remaining.
Reminder: this calculator is a learning tool, not personalised advice. For decisions involving your actual money, talk to a SEBI-registered adviser about your specific situation.