Borrowing calculator
EMI Calculator
A loan has two prices: the instalment you notice every month, and the interest you only see when you add it up. This works out both, and shows how the balance between them shifts over the years.
Your numbers
The rate your lender quotes, before any processing fee.
Monthly instalment
₹43,391.16
Paid every month for 20 years. Of everything you repay, 52% is interest.
- Total interest
- ₹54,13,879
- Total repayment
- ₹1,04,13,879
- Principal
- ₹50,00,000
Where your repayment goes
Principal is the money you borrowed. Interest is the price of borrowing it.
- Principal₹50 L
- Interest₹54.1 L
Interest falls as the balance does
Early instalments are mostly interest. The crossover is when a prepayment stops paying for itself.
- Principal
- Interest
Year-by-year schedule
What each year of the loan costs, and what is still owed at the end of it.
| Year | Principal | Interest | Balance left |
|---|---|---|---|
| Year 1 | ₹99,511 | ₹4,21,182 | ₹49,00,489 |
| Year 2 | ₹1,08,307 | ₹4,12,387 | ₹47,92,181 |
| Year 3 | ₹1,17,881 | ₹4,02,813 | ₹46,74,300 |
| Year 4 | ₹1,28,300 | ₹3,92,394 | ₹45,46,000 |
| Year 5 | ₹1,39,641 | ₹3,81,053 | ₹44,06,359 |
| Year 6 | ₹1,51,984 | ₹3,68,710 | ₹42,54,375 |
The arithmetic
How this calculator works
No proprietary model, no adjustment factor we will not name. This is the standard formula, applied exactly as written.
EMI = P × r × (1 + r)ⁿ ÷ [ (1 + r)ⁿ − 1 ]
where r = annual rate ÷ 12 ÷ 100
n = tenure in months
If r = 0, EMI = P ÷ n- P
- Principal — the amount borrowed
- r
- Interest rate for one month, as a decimal
- n
- Number of monthly instalments
- EMI
- The equal amount paid every month until the loan closes
- This is the reducing-balance method used by every retail lender in India: interest each month is charged only on what is still outstanding, so the interest portion of your instalment shrinks as the principal does.
- The schedule below rounds the final instalment so the closing balance lands exactly on zero rather than a few paise either side.
Worked example
The same maths, on real numbers
A ₹50,00,000 home loan at 8.5% over twenty years — a fairly ordinary set of numbers for a first home in a metro.
| Loan amount | ₹50,00,000 |
|---|---|
| Interest rate | 8.5% p.a. |
| Tenure | 20 years (240 months) |
| Monthly EMI | ₹43,391 |
| Total interest | ₹54,13,879 |
| Total repayment | ₹1,04,13,879 |
You borrow ₹50 lakh and repay more than ₹1 crore. Interest is 52% of everything that leaves your account — more than the house cost. Stretching the same loan to 25 years drops the EMI by about ₹3,100 a month and adds roughly ₹14 lakh to the interest. That trade is the single most consequential decision in the whole application.
What this calculator assumes
- The interest rate stays fixed for the entire tenure.
- Every instalment is paid in full and on time, on the same day each month.
- Interest is calculated monthly on the reducing balance, which is the standard Indian convention.
- The loan is disbursed in one go, not in construction-linked tranches.
What it deliberately leaves out
- Processing fees, legal charges, insurance bundled with the loan and prepayment penalties are not included.
- Floating-rate loans reset with the benchmark. In practice lenders usually adjust your tenure rather than your EMI, so the end date moves instead of the instalment.
- Tax relief on home loan interest and principal is not netted off here — see the income tax calculator for that.
Questions about the emi calculation
Because interest is charged on the outstanding balance, which is at its highest on day one. In the first year of a twenty-year loan at 8.5%, roughly four-fifths of each instalment is interest. That ratio inverts steadily; by the final years almost the whole instalment is principal.
Sometimes. A longer tenure lowers the instalment, which can be the difference between a comfortable budget and a fragile one. The cost is more total interest. The sensible version is to take the longer tenure for safety and prepay whenever you can — you get the low committed EMI and most of the interest saving.
On a floating-rate loan, usually not. Lenders typically hold the EMI and extend or shorten the tenure instead. That is easy to miss: a rate rise can add years to your loan without changing a single line on your bank statement.
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