See your exact monthly instalment, total interest paid, and a full month-by-month amortization schedule — instantly.
Monthly EMI
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| Period | Principal | Interest | Expense Cut | Outstanding |
|---|
Say you take a ₹30 lakh home loan at 8.5% for 20 years. Your EMI is about ₹26,035 a month. Over 20 years you pay back about ₹62.5 lakh in total, so ₹32.5 lakh is interest. That is more than the loan itself.
In the first year, about ₹2.53 lakh of your EMIs goes to interest and only about ₹60,000 reduces the loan. Half of all the interest is paid in the first 7 years. That is why paying a little extra early on saves so much (see below).
Here is how the loan length and interest rate change the same ₹30 lakh loan:
| Loan length and rate | Monthly EMI | Total interest |
|---|---|---|
| 15 years at 8.5% | ₹29,542 | ₹23.2 lakh |
| 20 years at 8.5% | ₹26,035 | ₹32.5 lakh |
| 30 years at 8.5% | ₹23,067 | ₹53.0 lakh |
| 20 years at 9.0% | ₹26,992 | ₹34.8 lakh |
| 20 years at 9.5% | ₹27,964 | ₹37.1 lakh |
Going from 20 to 30 years lowers the EMI by only about ₹3,000 a month, but adds about ₹20.5 lakh of extra interest. A 1% higher rate costs about ₹4.6 lakh more over 20 years.
Most home loans in India have a floating rate linked to the RBI repo rate. When rates go up, banks usually keep your EMI the same and make the loan longer, so you pay more interest without noticing. Check your loan statement once a year.
On the ₹30 lakh loan above, paying just one extra EMI each year (13 instead of 12) ends the loan in about 16 years 9 months instead of 20 years, and saves about ₹6.2 lakh in interest. Banks don’t charge a prepayment penalty on floating-rate home loans for individuals.
The EMI covers only the loan and interest. Processing fees, legal charges and loan insurance that banks often add on top are not in this number. Ask for the full cost in writing before you sign.
Some personal loans, car loans and gadget loans quote a "flat" rate. A flat rate charges interest on the full loan even after you have repaid part of it, so the real rate is much higher. Read flat vs reducing interest rates before you sign.
Quick answers about EMIs, interest and amortization.
An EMI calculator estimates the fixed monthly amount you must pay to repay a loan. Enter your loan amount, annual interest rate, and tenure — it applies the standard EMI formula and shows your payment, total interest, and full amortization schedule.
EMI = [P × r × (1+r)^n] / [(1+r)^n − 1], where P is principal, r is the monthly rate (annual ÷ 12), and n is total months. Our calculator uses this exact formula and generates a month-by-month breakdown.
An amortization schedule shows how each EMI splits between principal and interest month by month. Early EMIs are mostly interest; as the loan ages the principal component grows and your outstanding balance falls.
Yes — longer tenure means a lower EMI but significantly more total interest paid. Use the slider to compare tenures and find the right balance between an affordable monthly payment and minimising interest cost.
Prepaying gives you a sure "return" equal to your loan rate (for example 8.5%), with no risk. Investing in equity funds may earn more over many years, but it is not guaranteed. Many people do both: a small prepayment every year, plus a monthly SIP. If your loan rate is high (above about 9–10%), prepaying is usually the better choice.
On a floating-rate loan, the bank recalculates when the rate changes. Usually it keeps the EMI the same and changes the number of months left. You can ask the bank to change the EMI instead, which saves more interest when rates rise.
A common rule is to keep all your EMIs together under about 40% of your monthly take-home pay. Banks use a similar rule when they approve loans. Leave room for savings and an emergency fund, so one bad month does not make you miss an EMI.