Enter the loan amount, the yearly interest rate and how long you will take to repay, and the monthly EMI appears straight away, along with the total interest and the total you will pay. The table below breaks the loan down year by year, and the CSV download lists every monthly payment.
How EMI is calculated
An EMI, or equated monthly instalment, is the same payment every month for the whole loan. It is worked out with the standard formula banks use for reducing balance loans:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
P is the amount borrowed, r is the monthly interest rate (the yearly rate divided by 12, then by 100) and n is the number of months. For a loan of 10,00,000 at 9% a year over 5 years, r is 0.0075 and n is 60, which gives an EMI of 20,758 and total interest of about 2,45,501.
Why early payments are mostly interest
Each month's interest is charged on the balance still owed. At the start the balance is at its highest, so most of the EMI goes to interest and only a little reduces the loan. As the balance falls, the interest part shrinks and more of the same EMI repays the principal. The yearly table shows this clearly: on a long home loan, the first years repay surprisingly little of the amount borrowed.
This is also why paying extra early has the biggest effect. Any part prepayment reduces the balance that every later month's interest is charged on.
How tenure changes the cost
A longer tenure lowers the EMI but raises the total interest, often by a lot. Try the same loan at 15 and 20 years: the monthly payment drops a little, while the total interest grows by much more. Compare the Total interest line rather than the EMI alone when deciding.
What the calculator doesn't include
- Processing fees, insurance and taxes on fees, which some lenders add to the loan or charge up front.
- Floating rate changes. If your rate changes, enter the new rate and the remaining balance to see the new EMI.
- Rounding rules. Banks round each payment slightly differently, so their figures can differ from these by a few units.
Your lender's sanction letter is the final word on your actual EMI. Use this calculator to compare offers and plan before you apply.
The currency is picked from your time zone and can be changed; it only changes the symbol and number grouping, such as 10,00,000 for rupees. Nothing you enter is sent anywhere. For other quick sums, the Percentage Calculator works out rate changes and discounts, and the Age Calculator handles dates.
