What next?
The EMI is the start of the decision, not the end. These are the checks that usually follow.
Two loans with the same EMI can differ by lakhs
The EMI is the figure every lender leads with, and it is the least informative one. Stretching a ₹30 lakh home loan at 8.75% from 15 years to 20 drops the EMI from about ₹29,983 to ₹26,511 — a relief of roughly ₹3,500 a month — while the total interest rises from about ₹23.97 lakh to ₹33.63 lakh. The cheaper-feeling loan costs nearly ₹10 lakh more.
The other thing the EMI hides is where your money goes each month. On a 20-year loan the first instalment is about 82% interest. The schedule below shows the crossover — the month your payment finally starts going mostly to the balance — and on most long loans it arrives far later than people expect.
That is why prepayment is modelled here rather than left as an afterthought. Because early payments cut interest for the whole remaining term, a modest extra amount in year one does far more than the same amount in year twelve.
What your result means
EMI is the fixed amount you pay every month: interest on the balance you still owe, plus whatever is left going to the principal. It does not change over the term unless the rate does. Total payable is the EMI multiplied by the number of instalments — the real price of the loan.
When you add a prepayment, the EMI stays the same and the tenure shortens instead. That is the default treatment at most Indian lenders, and it is the one that saves the most interest. Some will reduce the EMI and keep the term — if that is what you want, ask explicitly, and expect to save considerably less.
Before committing, check the EMI against what you actually take home each month, not your gross package — the salary calculator gives that figure. Lenders generally want all your EMIs together to stay under 40–50% of net pay. If you are comparing offers with different fees, the APR calculator is the honest comparison, because a low rate with a large processing fee is not the cheap loan it looks like.
Why this one is different
The full month-by-month amortisation schedule, not a single EMI figure: what each payment splits into, what prepaying would save, and the whole plan downloadable. Twelve currencies with the rupee first. Most EMI calculators return one number and stop, which is the number least useful once you are actually servicing the loan.
How it works
Every EMI loan works on a reducing balance. Each month, interest is charged on what you still owe; the rest of your instalment reduces the balance, so next month’s interest is slightly smaller. The instalment is set so the balance reaches exactly zero on the final payment.
This is the same amortising-payment maths as the general loan calculator; what this page adds is the schedule, the prepayment modelling and the downloadable plan. Floating-rate loans re-price when the lender’s benchmark moves, and the schedule here assumes your rate holds for the whole term — re-run it whenever the rate changes.
How to use this calculator
- Pick a loan type for typical starting terms, or set your own.
- Choose your currency, then enter the amount, rate and tenure. Rupee amounts are also shown in lakh and crore.
- Add a prepayment if you plan one — extra every month, a one-off lump sum, or both.
- Open Repayment schedule to see where each instalment goes, switching between yearly and monthly detail.
- Download the plan as Word or PDF to keep, print or send to a co-applicant.
Formula
P is the loan amount, r the monthly interest rate (the annual rate divided by 12, then by 100) and n the number of monthly instalments. Each month, interest = balance × r, and the rest of the EMI reduces the balance. At 0% the formula collapses to P ÷ n.
Example calculation
A ₹30,00,000 home loan at 8.75% over 20 years:
EMI = ₹26,511 a month
Total payable = 26,511 × 240 = ₹63,62,717
Total interest = ₹33,62,717 — 112% of the amount borrowed
Add ₹5,000 a month and ₹2,00,000 in month 24 → cleared in 12 years 3 months, saving ₹15,42,869
Frequently asked questions
Is EMI the same as a loan repayment?＋
Yes. Equated Monthly Instalment is the term used across India and much of South Asia and the Gulf for what UK and US lenders simply call the monthly repayment. The maths is identical: a fixed payment on a reducing balance, calculated so the debt clears exactly at the end of the term.
Should I prepay or invest the money instead?＋
Compare the loan rate with the return you could realistically earn after tax. Prepaying a loan at 8.75% is a guaranteed, risk-free 8.75% return, which is difficult to beat safely. Investing can win over long periods but is not guaranteed. Many borrowers do both: keep an emergency fund of a few months of EMIs first, then prepay from what is left.
Does the schedule account for a change in interest rate?＋
No. It assumes the rate you enter holds for the whole term, which is right for a fixed-rate loan and only approximate for a floating one. On a floating-rate loan the lender normally keeps the EMI the same and adjusts the tenure when the benchmark moves, so re-run this whenever your rate is reset.
Assumptions & limitations
This is a clean reducing-balance model. Real loan agreements add things it does not know about:
- Fees are excluded. Processing fees, documentation and legal charges, valuation, insurance and GST on any of them are outside the EMI. They raise the real cost and are exactly what the APR calculator exists to fold back in.
- The rate is assumed constant. Floating-rate loans re-price with the lender’s benchmark, and a repo-linked loan can move several times over a 20-year term.
- Prepayment is assumed free and applied to the balance. Fixed-rate and non-individual borrowers can face prepayment charges, and lenders differ on whether a part-payment shortens the tenure or reduces the EMI — confirm which before you pay.
- Disbursement is assumed in full on day one. Construction-linked home loans release money in tranches and charge pre-EMI interest on what has been drawn, which this does not model.
- Tax relief is ignored. Where interest or principal attracts relief, your effective cost is lower than the figure shown here. The rules are jurisdiction-specific and change; take advice on your own position.