EMI Calculator — Home, Car, Personal & Education Loan
Calculate your monthly EMI, total interest payable and full amortisation schedule using the reducing-balance method every Indian bank uses. Then see exactly how much a small monthly prepayment would save you.
₹50.00 Lakh
240 monthly instalments
Move the slider to see your saving
Your Monthly EMI
₹43,391
240 instalments at 8.5% per annum
Principal
₹50.00 Lakh
Total Interest
₹54.14 Lakh
Total Payable
₹1.04 Cr
Where your money goes
You will pay ₹54.14 Lakh in interest — that is 1.08× for every rupee borrowed.
Year-wise repayment schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹99,511 | ₹4,21,182 | ₹49,00,489 |
| 2 | ₹1,08,307 | ₹4,12,387 | ₹47,92,181 |
| 3 | ₹1,17,881 | ₹4,02,813 | ₹46,74,300 |
| 4 | ₹1,28,300 | ₹3,92,394 | ₹45,46,000 |
| 5 | ₹1,39,641 | ₹3,81,053 | ₹44,06,359 |
| 6 | ₹1,51,984 | ₹3,68,710 | ₹42,54,375 |
| 7 | ₹1,65,418 | ₹3,55,276 | ₹40,88,957 |
| 8 | ₹1,80,039 | ₹3,40,655 | ₹39,08,918 |
| 9 | ₹1,95,953 | ₹3,24,741 | ₹37,12,965 |
| 10 | ₹2,13,274 | ₹3,07,420 | ₹34,99,691 |
| 11 | ₹2,32,125 | ₹2,88,569 | ₹32,67,566 |
| 12 | ₹2,52,643 | ₹2,68,051 | ₹30,14,923 |
| 13 | ₹2,74,974 | ₹2,45,720 | ₹27,39,949 |
| 14 | ₹2,99,279 | ₹2,21,415 | ₹24,40,670 |
| 15 | ₹3,25,733 | ₹1,94,961 | ₹21,14,937 |
| 16 | ₹3,54,525 | ₹1,66,169 | ₹17,60,412 |
| 17 | ₹3,85,862 | ₹1,34,832 | ₹13,74,550 |
| 18 | ₹4,19,968 | ₹1,00,726 | ₹9,54,582 |
| 19 | ₹4,57,090 | ₹63,604 | ₹4,97,492 |
| 20 | ₹4,97,492 | ₹23,202 | ₹0 |
How the EMI calculator works
An EMI (Equated Monthly Instalment) is a fixed payment you make every month until the loan is fully repaid. Each instalment is split between interest and principal. The interest is charged on the outstanding balance, so in the early years most of your EMI goes towards interest and very little reduces the actual loan.
This calculator uses the standard reducing-balance formula that every bank and NBFC in India applies:
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1)
where P is the loan amount, r is the monthly interest rate (annual rate divided by 12 and by 100) and n is the tenure in months.
Why prepayment saves so much
Because interest is front-loaded, any extra rupee you pay early goes straight against principal and removes all the future interest that principal would have attracted. On a ₹50 lakh home loan at 8.5% for 20 years, an extra ₹5,000 a month closes the loan about 4 years and 5 months early and saves roughly ₹13.9 lakh in interest — for a total extra outlay of about ₹9.4 lakh.
Use the prepayment slider above to model your own number. If your lender lets you choose, always pick tenure reduction over EMI reduction.
How much EMI can you afford?
- Under 40% of take-home pay — comfortable, leaves room for SIP and emergency savings.
- 40-50% — manageable but tight; most lenders will still approve.
- Above 50% — risky. A job change or medical emergency becomes hard to absorb, and most banks will reject the application.
Tax benefit on a home loan
Under the old tax regime, home loan interest on a self-occupied property is deductible up to ₹2 lakh a year under Section 24(b), and principal repayment counts towards the ₹1.5 lakh Section 80C limit. The new tax regime does not allow either deduction for a self-occupied property. Check both regimes with our income tax calculator before deciding.
Frequently Asked Questions
How is EMI calculated on a loan?
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. Every Indian bank uses this reducing-balance method, so the interest each month is charged only on the outstanding balance.
What is a good EMI to income ratio?
Most Indian lenders cap total EMIs at 50-55% of your net monthly income, and prefer 40% or below. For a home loan specifically, keeping the EMI under 35-40% of take-home pay leaves room for other goals like SIP investments and an emergency fund.
Does prepaying a home loan actually save money?
Yes, and the saving is largest in the early years because that is when the interest portion of each EMI is highest. On a ₹50 lakh, 20-year loan at 8.5%, paying just ₹5,000 extra every month clears the loan roughly 4.5 years early and saves over ₹13 lakh in interest.
Should I reduce the EMI or the tenure when prepaying?
Reducing the tenure saves far more interest because you stop paying interest sooner. Reducing the EMI only improves monthly cash flow. Choose tenure reduction unless your monthly budget is genuinely strained.
Why is most of my early EMI going to interest?
Interest is charged on the outstanding balance, which is highest at the start. In year one of a 20-year home loan roughly 80% of each EMI is interest. The principal share rises every month, which is why the amortisation schedule below is worth reading.
Is a floating or fixed rate better in India?
Floating rates are usually 1-2% cheaper and most Indian home loans are floating, linked to the RBI repo rate. Fixed rates give certainty but cost more. If you expect rates to fall, floating is generally better; if you need budget certainty, fixed is safer.
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