How is each EMI split between principal and interest?

The EMI stays constant, but its composition shifts. Early on most of it is interest — month one of a ₹25 lakh, 9%, 20-year loan carries ₹18,750 of interest (25,00,000 × 0.75%) and only ₹3,743 of principal. As the balance falls, the interest share shrinks and the principal share grows, so the final EMIs are almost entirely principal.

Should I pick a longer or shorter tenure?

A longer tenure lowers the EMI but raises total interest — at 9%, ₹25 lakh costs about ₹13 lakh in interest over 10 years but about ₹29 lakh over 20. Pick the shortest tenure whose EMI fits your budget; many borrowers start long for safety and then prepay to shorten it.

Does prepaying really save interest?

Yes — every rupee prepaid stops accruing interest for the rest of the tenure, so early prepayments save the most. On floating-rate loans to individuals, lenders typically cannot charge a prepayment penalty. This calculator models no prepayments, so for a fixed rate its interest figure is the maximum you would pay.

Fixed or floating rate — how does that change these numbers?

The formula assumes one rate for the whole tenure, which matches a fixed-rate loan. Most Indian home loans are floating: when the RBI repo rate moves, the lender resets either your EMI or your remaining tenure. Re-run the calculator with the new rate after each reset to see the updated cost.

Are processing fees and insurance included?

No — the results cover principal and interest only. Lenders typically add a processing fee (often 0.25–1% of the loan) and may bundle life or property insurance. Compare offers on the all-in cost in the sanction letter, not on the EMI alone.

Why does my bank’s EMI differ by a few rupees?

Small differences come from rounding conventions (many banks round the EMI up to the next rupee), broken-period interest between disbursement and the first EMI date, or a slightly different rate basis. The formula here is the standard reducing-balance one; a gap of more than a few rupees usually means a different rate or tenure is being applied.

Is my loan data uploaded?

No — everything is computed in your browser, and the amounts you enter never leave your device.

EMI Calculator (India)

Calculate loan EMI in ₹ with total interest and amortization — home, car or personal loans.

Runs in your browser — files never leave your device

Loan amount₹Interest rate%Termyears

Monthly payment

₹22,493.15

Total interest

₹28,98,355.74

Total paid

₹53,98,355.74

How it works

An EMI (equated monthly installment) is the fixed amount you pay a lender each month until a loan is cleared; part of every payment covers that month’s interest and the rest repays principal. Enter the loan amount, the annual interest rate and the tenure, and this calculator returns the EMI along with the two numbers lenders rarely lead with: total interest and the total amount you will repay.

It uses the standard reducing-balance formula: EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. Total repayment is EMI × n, and total interest is that figure minus the principal. A 0% rate is handled as simple division (P ÷ n), and results are rounded to the paisa.

Worked example with the defaults: a ₹25,00,000 home loan at 9% for 20 years gives r = 0.0075 and n = 240. The EMI works out to ₹22,493.15, total repayment ₹53,98,355.74 and total interest ₹28,98,355.74 — over a 20-year tenure you pay more in interest than you borrowed, which surprises most first-time borrowers.

Tenure is the lever that matters. The same loan over 10 years costs ₹31,668.94 a month — about ₹9,176 more — but total interest falls to ₹13,00,273.21, less than half the 20-year figure. A longer tenure lowers the EMI but raises the total interest, so the practical approach is to choose the shortest tenure whose EMI you can sustain comfortably, and keep total EMIs within roughly 40–50% of take-home pay.

The calculator assumes a fixed rate and no prepayments for the whole tenure. Floating rates reset with the market, changing either the EMI or the remaining tenure, and prepayments cut interest sharply because they reduce the outstanding principal early. Processing fees, insurance and taxes are not included — check the lender’s sanction letter for the all-in cost before signing.

Frequently asked questions

How is each EMI split between principal and interest?: The EMI stays constant, but its composition shifts. Early on most of it is interest — month one of a ₹25 lakh, 9%, 20-year loan carries ₹18,750 of interest (25,00,000 × 0.75%) and only ₹3,743 of principal. As the balance falls, the interest share shrinks and the principal share grows, so the final EMIs are almost entirely principal.
Should I pick a longer or shorter tenure?: A longer tenure lowers the EMI but raises total interest — at 9%, ₹25 lakh costs about ₹13 lakh in interest over 10 years but about ₹29 lakh over 20. Pick the shortest tenure whose EMI fits your budget; many borrowers start long for safety and then prepay to shorten it.
Does prepaying really save interest?: Yes — every rupee prepaid stops accruing interest for the rest of the tenure, so early prepayments save the most. On floating-rate loans to individuals, lenders typically cannot charge a prepayment penalty. This calculator models no prepayments, so for a fixed rate its interest figure is the maximum you would pay.
Fixed or floating rate — how does that change these numbers?: The formula assumes one rate for the whole tenure, which matches a fixed-rate loan. Most Indian home loans are floating: when the RBI repo rate moves, the lender resets either your EMI or your remaining tenure. Re-run the calculator with the new rate after each reset to see the updated cost.
Are processing fees and insurance included?: No — the results cover principal and interest only. Lenders typically add a processing fee (often 0.25–1% of the loan) and may bundle life or property insurance. Compare offers on the all-in cost in the sanction letter, not on the EMI alone.
Why does my bank’s EMI differ by a few rupees?: Small differences come from rounding conventions (many banks round the EMI up to the next rupee), broken-period interest between disbursement and the first EMI date, or a slightly different rate basis. The formula here is the standard reducing-balance one; a gap of more than a few rupees usually means a different rate or tenure is being applied.
Is my loan data uploaded?: No — everything is computed in your browser, and the amounts you enter never leave your device.

EMI Calculator (India)

How it works

Frequently asked questions

Related tools