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EMI Calculator
Monthly instalment, total interest and a year-by-year repayment schedule for any loan.
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An EMI is a level payment split between interest and principal, where the proportions shift over the life of the loan. The schedule below shows exactly how.
Why early years feel like nothing is happening
Interest is charged on the outstanding balance. At the start the balance is at its largest, so most of the instalment goes to interest. On a 20-year home loan at 8.6%, roughly two-thirds of the first year's payments is interest. That is also why prepaying in year three saves several times what the same amount saves in year fifteen.
Total interest is the number to look at
Extending the tenure lowers the EMI and raises the total cost substantially. The monthly figure is what you can afford; the total is what it costs.
Floating rates
Home loans linked to the repo rate re-price when the repo moves. Banks usually adjust the tenure rather than the EMI, which keeps your monthly payment steady while quietly changing the total. Check which one your lender moved after a rate change.
Frequently asked questions
How is EMI calculated?
Using the reducing-balance formula: P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate and n the number of months. Interest each month is charged on the outstanding balance, so the split between interest and principal shifts over the term.
Why is most of my early EMI going to interest?
Because interest is charged on the balance, which is largest at the start. On a 20-year home loan at 8.6%, roughly two-thirds of the first year's instalments is interest. This is also why prepaying in year three saves several times what the same amount saves in year fifteen.
Does a longer tenure make the loan cheaper?
It lowers the monthly payment and raises the total cost substantially. The EMI is what you can afford; total interest is what the loan actually costs. Compare both before stretching the term.
What happens to my EMI when interest rates change?
On a repo-linked floating loan, banks usually keep the EMI steady and extend the tenure instead. Your monthly outgo looks unchanged while the total cost rises. Ask which one your lender adjusted after any rate revision.