Home Calculators EMI Calculator
What a loan really costs each month
Pick the loan, set the amount, the rate and the tenure. The calculator shows the EMI, the total interest, what the loan costs in total, and how each year's payments split between principal and interest — which is the part most people are surprised by.
Your numbers
Change anything; the result updates as you type.
Result
A loan is compounding pointed the other way.
The same arithmetic that grows a SIP grows the interest on a loan. If you are weighing a prepayment against investing the same money, the honest comparison is the loan rate against a return you can actually defend.
How a month works — about ten minutes on the 1stHow an EMI is calculated
An EMI is the fixed monthly payment that clears a reducing-balance loan exactly at the end of its tenure. Each payment is split: interest on the outstanding balance first, and whatever is left reduces the principal.
EMI = P × r × (1 + r)n ÷ [ (1 + r)n − 1 ]
where P is the loan amount, r is the monthly interest rate (annual ÷ 12) and n is the number of months.
Why the early years feel like nothing is happening
Because they nearly aren't. On a 20-year home loan at 8.5%, about four-fifths of the first year's payments are interest and only a fifth touches the principal. The chart on this page shows that split year by year — the blue block is principal, the amber block is interest, and they swap places as the loan matures.
Three things that change the answer more than you expect
- Tenure. Stretching a home loan from 15 to 25 years cuts the EMI by roughly a fifth and can add more than half the loan amount again in interest.
- Rate. On a floating-rate home loan a single percentage point over twenty years is usually worth several lakh rupees.
- Prepayment. Money paid early comes straight off the principal, so it saves every future interest charge that principal would have attracted.
Assumptions this makes
- A fixed rate for the whole tenure, equal monthly instalments, and no prepayments, moratorium or part-disbursement.
- No processing fee, insurance, GST or documentation charge — those are paid on top of the figures here.
- A floating-rate loan re-prices when the benchmark moves; when it does, banks usually change the tenure rather than the EMI.