EMI calculator
What is the EMI on any loan, and what does the interest add up to?
Reducing balance, as quoted. A flat-rate quote is roughly double this.
₹16,861per month
- Total interest
- ₹4,16,324
- Total payable
- ₹14,16,324
- Interest as % of principal
- 41.6%
- Payments
- 84 months
- Principal
- Interest
| Year | Principal | Interest | Balance left |
|---|---|---|---|
| 1 | ₹1,02,156 | ₹1,00,176 | ₹8,97,844 |
| 2 | ₹1,13,414 | ₹88,918 | ₹7,84,430 |
| 3 | ₹1,25,913 | ₹76,419 | ₹6,58,517 |
| 4 | ₹1,39,788 | ₹62,544 | ₹5,18,729 |
| 5 | ₹1,55,193 | ₹47,139 | ₹3,63,536 |
| 6 | ₹1,72,296 | ₹30,036 | ₹1,91,240 |
| 7 | ₹1,91,240 | ₹11,047 | ₹0 |
An EMI is one flat monthly payment split two ways — part interest on what you still owe, part principal off the balance. Early on it is mostly interest, which is why a loan four years in has paid off far less of itself than the calendar suggests. Put in the amount, the rate the lender quoted and the number of years, and this says what leaves your account each month, what the interest adds up to over the whole loan, and how much you still owe at the end of every year.
A worked example
A used car, ₹8,00,000 borrowed at 11.25% on reducing balance for 5 years. Set the three fields above to those and the page returns:
- ₹17,494 per month, for 60 payments
- ₹2,49,640 total interest
- ₹10,49,640 total payable
- interest is 31.2% of what you borrowed
- ₹8,00,000 Principal — the money you actually borrowed
- ₹2,49,640 Interest — the price of borrowing it
Every rupee of the ₹10,49,640 you will hand over, in two parts.
The split is not spread evenly across the five years. In year one, ₹83,618 of your payments goes to interest and only ₹1,26,310 comes off the balance — twelve EMIs in, you still owe ₹6,73,690 of ₹8,00,000. By the final year the interest charge is ₹12,248, because there is barely any balance left to charge it on. That asymmetry is the whole argument for prepaying early: a rupee paid in year one kills interest that would have been charged for 48 more months.
The tenure is the price
Same loan, same rate, three different tenures. The monthly payment is the number the salesperson quotes; the total interest is the number you pay.
Dropping the EMI by ₹12,483 a month costs ₹2,13,156 in extra interest.
What this number does not include
The EMI is the loan, and only the loan. Everything a lender adds around it sits outside this figure, and together it is rarely small.
Fees at the front
Processing fee, documentation, stamp and valuation charges are deducted or billed at disbursal, and GST applies to them (interest itself is exempt). A fee is not in any EMI, so a cheaper rate with a fatter fee can be the dearer loan.
Insurance folded in
Loan-protection or property cover is often added to the sanctioned amount, so you pay EMI on the premium too. Ask for the EMI with and without it — and whether it is optional, because it usually is.
Interest before the first EMI
Interest runs from the disbursal date, not from your EMI date, and a loan released in stages (a home under construction, an education loan during the course) accrues on each tranche. That broken-period or pre-EMI interest is charged before this schedule even starts.
Tax relief is not netted off
This is the gross outgo. A home loan can attract deductions on interest under section 24(b) and on principal under section 80C, and education-loan interest under section 80E; whether any of them reach you depends on the regime you file under. None of it is in the EMI.
Two more, specific to the rate you typed. If the quote was flat, this page will understate the cost badly — flat interest is charged on the original amount for the whole tenure, so put in the reducing-balance rate the lender is obliged to state, not the headline. And if the loan is floating, this is a snapshot at today’s rate: the schedule above assumes it never moves, which over twenty years it certainly will.
Where to go next
If you are holding a loan rather than shopping for one, the prepayment calculator is the one to run — it shows what a lump sum buys, in interest saved and months cut off the end. For a property, the home loan EMI calculator starts from the price and down payment instead of the loan amount, and the stamp duty calculator covers the registration cost that no EMI includes.
Is a flat interest rate the same as the rate above?
No, and this is where dealer and personal-loan quotes mislead. This calculator uses reducing balance, where interest is charged only on what you still owe. A flat rate charges it on the original amount for the whole tenure, so a flat quote of the same number costs far more — the effective reducing-balance rate on a flat quote is roughly double it. Ask the lender to state the annual percentage rate on reducing balance and put that number in the field.
Why does a longer tenure make the EMI smaller but the loan dearer?
The EMI falls because the same principal is spread over more months, but every extra month is another month of interest charged on a balance that is still outstanding. Stretch the tenure and the monthly payment eases while the total interest climbs. Move the tenure slider and watch the headline and the total interest move in opposite directions.
Does my EMI change when the RBI changes the repo rate?
Only if your loan is floating-rate. Retail floating-rate loans at banks are linked to an external benchmark — usually the repo rate — under the RBI's external benchmark rules, so the rate resets when the benchmark moves. Most lenders then keep the EMI where it is and lengthen the tenure instead, so a rate rise quietly adds months to the end of the loan. The RBI's 2023 circular on the reset of floating-rate EMI loans requires the lender to tell you the effect and to offer you the choice between a higher EMI and a longer tenure. Ask which one yours is changing, then run both here.
Will I be charged a penalty if I close the loan early?
On a floating-rate term loan taken by an individual, the RBI bars banks from levying foreclosure charges or prepayment penalties — that is the rule for the housing and other floating-rate retail loans it covers. A fixed-rate loan can carry one, and it is usually written as a percentage of the amount you prepay. Read the sanction letter for the exact clause before you plan a lump sum.
Why does the last row of the table sometimes not close at exactly zero?
Because the interest charge is rounded to the rupee every month, the way a lender books it, and sixty or two hundred and forty roundings can leave a tail of a few rupees — ₹50,00,000 at 8.5% over 20 years ends the schedule at ₹83. Most combinations, including the figures this page opens on, do land on exactly zero. A real lender squares any tail off in the final instalment. It is a rounding artefact of the schedule, not money you owe anyone.
This page starts from typical figures. In Hundo the same calculator opens on your own — the loan, the deposit, the salary already on the ledger — and says where each number came from.