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Calculate the monthly instalment, total interest and a year-by-year payoff schedule for any loan.
Formula
EMI = P × r × (1+r)n / [(1+r)n − 1] where r = monthly rate, n = number of months
Worked example
A Rs 25,00,000 loan at 9% for 20 years (240 months, monthly rate 0.75%): EMI ≈ Rs 22,493. Total paid = Rs 53,98,320, of which Rs 28,98,320 is interest.
Quick reference
| Loan | 10 yr @ 9% | 20 yr @ 9% | 30 yr @ 9% |
|---|---|---|---|
| Rs 20 L | 25,335 | 17,995 | 16,092 |
| Rs 50 L | 63,338 | 44,986 | 40,231 |
| Rs 1 Cr | 1,26,676 | 89,973 | 80,462 |
Approximate monthly EMI.
Frequently asked questions
How is EMI calculated?
EMI uses the reducing-balance formula: EMI = P × r × (1+r)n / ((1+r)n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments.
Why is so much of my early EMI interest?
Interest is charged on the outstanding balance, which is highest at the start. In the first year of a 20-year home loan, roughly 80% of each EMI is interest and only 20% repays principal. The ratio flips over the life of the loan.
Does prepaying a loan save money?
Yes. A prepayment goes entirely to principal, cutting the balance on which future interest is charged. Prepaying early in the tenure saves far more interest than prepaying near the end.