Home › Tools
Enter loan amount, interest rate and tenure to see your monthly EMI and total interest instantly.
Your EMI stays the same every month, but its composition changes. Early EMIs are mostly interest; later ones are mostly principal. The formula is EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is principal, r is the monthly rate (annual ÷ 12 ÷ 100) and n is months.
Example: ₹10,00,000 at 8.5% for 20 years → EMI ≈ ₹8,678, total interest ≈ ₹10,82,776. Yes — on a 20-year loan you pay more interest than principal. That is why tenure decisions matter so much.
| Tenure | EMI (₹10L @ 8.5%) | Total interest |
|---|---|---|
| 10 years | ₹12,399 | ₹4.87 lakh |
| 15 years | ₹9,847 | ₹7.72 lakh |
| 20 years | ₹8,678 | ₹10.83 lakh |
| 30 years | ₹7,689 | ₹17.68 lakh |
Shorter tenure = higher EMI but dramatically less total interest. Choose the shortest tenure whose EMI stays under ~40% of your monthly income.
Prepay early: in the first years, one extra EMI per year can cut years off a home loan. Confirm your loan has no prepayment penalty (floating-rate home loans in India legally cannot charge one).
Negotiate the rate: even 0.25% less on a 20-year loan saves thousands. Compare banks before signing, and ask your existing bank to match offers.
Refinance when rates fall: balance transfer to a cheaper lender often makes sense if you are early in the loan.
Every EMI in the world comes from one formula: EMI = P x r x (1+r)^n / ((1+r)^n - 1), where P is the principal, r is the monthly interest rate (annual rate divided by 12, then by 100), and n is the number of monthly instalments. The result is a constant payment in which the interest share shrinks and the principal share grows every month — the reducing-balance method mandated for Indian retail loans.
Worked example: a 30 lakh home loan at 9% for 20 years gives r = 0.0075 and n = 240. The formula yields an EMI of about 26,992. Total repayment is about 64.8 lakh — meaning interest alone is nearly 34.8 lakh, more than the loan itself. This is why the loan tenure is the single biggest lever on total cost.
Since the early EMIs are almost entirely interest, prepaying in the first years destroys far more interest than the same rupee prepaid later. Even one extra EMI a year can cut a 20-year loan by roughly 3 years.
Two rules worth knowing: RBI has barred banks from charging prepayment penalties on floating-rate loans given to individuals (banks may still charge on fixed-rate ones, and a small fee may apply to part-prepayments on some products) — always confirm current terms with your lender. And as a general affordability guard, keep total EMIs within about 40-50% of take-home pay so one income shock does not cascade into default.
You might also find these useful: