Know your exact monthly payment, total interest, and the real impact of prepaying your loan — before you sign anything.
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Loan Details
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Principal amount you're borrowing
Home loans: 8–9.5%
Enter in YEARS, not months (e.g. 20, not 240)
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One-time fee charged by lender (typically 0.5–2%)
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Enter your loan details to see your EMI and full breakdown.
Your Monthly EMI
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Principal vs Interest
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Loan Repayment
Principal
Interest
Your Loan Breakdown
Here's the Full Picture
Monthly EMI
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Fixed for the entire tenure
Total Interest Payable
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Total Amount Payable
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Principal + Interest + Fees
Prepayment Power
What If You Pay Extra?
See how a one-time lump sum or extra monthly amount shortens your loan and saves interest.
Interest Saved
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Loan Tenure Reduced By
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The Full Schedule
Amortization Schedule
Year
EMI
Principal Paid
Interest Paid
Balance Remaining
The Basics
Understanding Your EMI
What is an EMI?
An Equated Monthly Instalment is a fixed payment you make every month to repay a loan — covering both principal and interest. The amount stays constant throughout the tenure (for fixed-rate loans), but the principal-to-interest ratio within each EMI shifts dramatically over time.
Why Early EMIs Are Mostly Interest
In the first few years, you're paying mostly interest with very little principal reduction. For a 20-year home loan, nearly 65–70% of your EMIs in year 1 go toward interest. This is why prepaying early in the loan saves dramatically more than prepaying later.
Factors That Affect Your EMI
Loan amount — higher principal, higher EMI
Interest rate — even 0.5% difference matters over 20 years
Tenure — longer tenure lowers EMI but raises total interest
Fixed vs floating rate — floating moves with RBI repo rate
Should You Prepay or Invest?
If your loan interest rate is higher than what you'd earn investing (after tax), prepay. Home loans at 8–9% with tax benefits often make sense to let run. Personal loans at 12–18% should almost always be prepaid aggressively — the guaranteed "return" from prepaying beats most investments.
The Math
How EMI is Calculated
EMI = P × r × (1 + r)ⁿ / [(1 + r)ⁿ − 1]
P = Principal loan amount r = Monthly interest rate (Annual rate ÷ 12 ÷ 100) n = Total number of monthly instalments (Years × 12)
Real Story
Sanjay from Mumbai Saved ₹14 Lakh with One Decision
Sanjay took a ₹50 lakh home loan at 8.5% for 20 years — an EMI of ₹43,391. Three years in, he received a ₹6 lakh bonus. Instead of buying a car, he made a lump sum prepayment. His bank adjusted the tenure downward instead of reducing the EMI. The result: his loan finished nearly 3 years early, and he saved over ₹14 lakh in interest he would otherwise have paid — far more than any car would have been worth.
Lesson: Always choose "reduce tenure" over "reduce EMI" when prepaying. The interest savings compound dramatically over the remaining years.
A ₹50 lakh home loan at 8.5% for 20 years costs you nearly ₹54 lakh in interest alone. The house doesn't cost what the sticker says — it costs what the bank statement says.
finfluencee.com — The Real Cost of Borrowing
Common Questions
Frequently Asked Questions
Most Indian banks and financial planners recommend keeping your total EMIs (across all loans) under 40% of your monthly take-home income. If your EMIs exceed 50%, you're in a financially fragile position — any income disruption becomes a serious problem. For home loans alone, lenders typically cap eligibility around 40–50% of income.
A longer tenure reduces your monthly EMI but dramatically increases total interest paid. A ₹40 lakh loan at 8.5% costs about ₹37 lakh in interest over 20 years, but ₹47 lakh over 25 years — for the same principal. Choose the longest tenure you're comfortable with for eligibility purposes, but prepay aggressively whenever you have surplus cash to cut the real cost.
Compare your loan's after-tax interest rate to your expected post-tax investment return. Home loans (8–9%, with Section 24 and 80C tax benefits) often have a lower effective cost than equity returns (11–13%), so investing can win for home loans. Personal loans and credit card debt (12–36%) should almost always be prepaid first — no investment reliably beats that guaranteed "return."
Fixed rates stay constant for the loan tenure (or a fixed period), giving payment certainty but usually starting higher. Floating rates move with the RBI repo rate or MCLR/EBLR benchmarks — they can rise or fall, and most Indian home loans today are floating-rate, linked to the External Benchmark Lending Rate (EBLR).
For floating-rate home loans to individual borrowers, RBI rules prohibit prepayment penalties entirely — you can prepay or foreclose for free. Fixed-rate loans, personal loans, and loans to non-individuals may still attract a prepayment charge (typically 2–5% of the outstanding amount) — always check your loan agreement before assuming it's free.
Under the old tax regime: Section 80C allows up to ₹1.5 lakh deduction on principal repayment (within the overall 80C limit), and Section 24(b) allows up to ₹2 lakh deduction on interest paid for a self-occupied property. First-time buyers may also claim additional deduction under Section 80EEA, subject to conditions. These benefits are not available under the new tax regime — compare both regimes with your CA before deciding.
Disclaimer: This calculator is for illustrative purposes only. Actual EMI, interest rates, processing fees, and prepayment terms vary by lender and your credit profile. This does not constitute financial advice. Please consult your bank or a financial advisor before making borrowing decisions.
