Calculate loan EMI, total interest payable, and yearly amortization schedule online.
₹ 21,696
Payable monthly for 240 installments₹ 25,00,000
48.0% of Total Payment₹ 27,06,940
52.0% of Total Payment₹ 52,06,940
Total overall cash outflow| Year | Opening Balance (₹) | Principal Paid (₹) | Interest Paid (₹) | Total Payment (₹) | Closing Balance (₹) |
|---|
Our free EMI calculator (also known as the equated monthly installment calculator) lets you calculate your monthly loan commitments and interest costs for Home Loans, Car Loans, Personal Loans, or Education Loans in seconds:
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a financial lender (bank or NBFC) at a specified calendar date each month. Every EMI installment is structured to pay off both the monthly interest charge and a portion of the principal loan amount so that over the specified tenure, the loan balance is extinguished to zero.
All Indian retail banking institutions (SBI, HDFC, ICICI, Axis, Bank of Baroda, PNB) compute loan EMIs using the standard reducing balance mathematical formula:
Where the mathematical variables represent:
A critical financial reality that every borrower must understand is the front-loaded amortization curve. Because monthly interest is calculated against the remaining principal balance, your interest liability is highest in the earliest months of the loan:
In the first 5 years of a 20-year home loan, up to 70% to 80% of every single EMI check goes directly towards paying interest, while only 20% to 30% reduces your actual principal loan balance.
As the outstanding balance drops, interest charges decrease drastically. In the final 5 years, over 80% of your EMI goes towards principal reduction and only a tiny fraction goes towards interest.
Because 100% of any lump-sum prepayment goes directly towards reducing your outstanding principal balance, making strategic part-payments in the early years yields dramatic savings:
| Prepayment Strategy | Action Taken | Impact on a ₹30 Lakh / 20-Yr Home Loan |
|---|---|---|
| The 1 Extra EMI Strategy | Pay 13 EMIs a year instead of 12 (pay 1 additional EMI every December or Diwali). | Reduces loan tenure by ~4.5 Years and saves over ₹7.5 Lakhs in interest! |
| The 5% Annual Step-Up | Increase your monthly EMI by 5% every year as your salary increases. | Cuts tenure from 20 years down to ~11.5 Years and saves over ₹12 Lakhs! |
| Lump-sum Bonus Part-payment | Prepay ₹50,000 to ₹1,00,000 once a year whenever you receive an annual performance bonus. | Shortens tenure by 5 to 7 years with massive compound interest savings. |
Under the Old Tax Regime of the Income Tax Act, borrowers taking home loans for residential properties can claim substantial dual tax deductions:
Quickly look up your monthly EMI across various loan amounts and tenures at a benchmark 8.50% interest rate:
| Loan Amount (₹) | 5 Years (60 Mo) | 10 Years (120 Mo) | 15 Years (180 Mo) | 20 Years (240 Mo) | 30 Years (360 Mo) |
|---|---|---|---|---|---|
| ₹ 5,00,000 | ₹10,258 | ₹6,200 | ₹4,924 | ₹4,339 | ₹3,845 |
| ₹ 10,00,000 | ₹20,517 | ₹12,399 | ₹9,847 | ₹8,678 | ₹7,689 |
| ₹ 25,00,000 | ₹51,291 | ₹30,996 | ₹24,619 | ₹21,696 | ₹19,223 |
| ₹ 50,00,000 | ₹1,02,583 | ₹61,993 | ₹49,237 | ₹43,391 | ₹38,446 |
| ₹ 75,00,000 | ₹1,53,874 | ₹92,989 | ₹73,856 | ₹65,087 | ₹57,669 |
| ₹ 1,00,00,000 | ₹2,05,165 | ₹1,23,986 | ₹98,474 | ₹86,782 | ₹76,891 |
Loan EMI is calculated using the standard reducing balance mathematical formula: EMI = [P × r × (1 + r)^n] ÷ [(1 + r)^n - 1], where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the loan tenure in total months. Every EMI payment comprises an interest portion and a principal repayment portion.
In a reducing balance loan (standard for home, personal, and car loans), interest is charged only on the outstanding principal remaining after each monthly repayment. In a flat rate loan, interest is calculated on the full original loan amount for the entire duration, making the effective interest rate almost double the stated flat rate.
Because interest is computed on the outstanding principal balance, which is highest at the beginning of the loan. In the initial years of a long-term loan (like a 20-year home loan), up to 70% to 80% of your EMI goes towards interest servicing, while only a small fraction reduces the principal. As the principal gradually drops, the interest component decreases and principal repayment accelerates.
100% of any prepayment or part-payment goes directly towards reducing the outstanding principal amount. By lowering the principal immediately, subsequent monthly interest charges drop significantly, saving you lakhs of rupees in total interest outflow and shortening your overall loan tenure by years.
Under the Old Tax Regime, home loan borrowers can claim two major tax deductions: (1) Section 24(b) allows up to ₹2,00,000 per financial year deduction on the interest component for a self-occupied property. (2) Section 80C allows up to ₹1,50,000 deduction on the principal repayment component, subject to the overall Section 80C cap.
Yes. While a longer tenure reduces your monthly EMI burden and improves monthly cash flow, the total cumulative interest paid over the life of the loan increases exponentially. For instance, extending a ₹30 Lakh home loan at 8.5% from 15 years to 30 years lowers the EMI by ₹3,923/month but increases the total interest paid by a massive ₹27.35 Lakhs.
No. As per Reserve Bank of India (RBI) regulations, banks and Housing Finance Companies (HFCs) are strictly prohibited from levying any prepayment or foreclosure penalties on floating rate home loans taken by individual borrowers.
An amortization schedule is a comprehensive tabular statement outlining each periodic loan payment throughout the entire loan tenure. It displays the exact split between principal repayment and interest paid in every installment, alongside the declining outstanding loan balance.