EMI Calculator
See your monthly instalment, total interest, and how the loan unwinds over time. Everything updates live as you drag — and nothing leaves your browser.
Your numbers
Monthly EMI
₹34,713Total interest
₹43,31,103
Total payment
₹83,31,103
Principal vs interest
Outstanding balance over time
How is EMI calculated?
EMI (Equated Monthly Instalment) is the fixed amount you pay each month on a loan. It's calculated with this formula:
EMI = P × r × (1 + r)ⁿ ⁄ ((1 + r)ⁿ − 1)
where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments. Early EMIs are mostly interest; later ones are mostly principal — which is why the outstanding balance falls slowly at first and faster later. This is called amortization, and the chart above shows it in action.
A worked example
On a ₹40,00,000 home loan at 8.5% for 20 years, the EMI works out to roughly ₹34,700/month. Over the full tenure you'd pay about ₹83 lakh in total — meaning nearly ₹43 lakh is interest, more than the amount you borrowed. In the first year, the bulk of each EMI goes to interest and only a small slice reduces the principal; by the final years, it's the reverse.
Why total interest can shock you
Over a long tenure, interest often rivals or exceeds the amount you borrowed. The two biggest levers are the interest rate and the tenure:
| Tenure | EMI (₹40L @ 8.5%) | Total interest |
|---|---|---|
| 10 years | ~₹49,600 | ~₹19.5 lakh |
| 15 years | ~₹39,400 | ~₹30.9 lakh |
| 20 years | ~₹34,700 | ~₹43.3 lakh |
| 30 years | ~₹30,800 | ~₹70.7 lakh |
A longer tenure lowers the monthly EMI but sharply raises the total interest. Choosing the shortest tenure you can comfortably afford is one of the biggest money-savers in personal finance.
Reducing-balance vs flat interest
This calculator uses the reducing-balance method — the standard for home and most retail loans — where interest is charged only on the outstanding balance. Some loans quote a flat rate, which charges interest on the full original principal for the entire tenure. A "flat 8%" loan is far more expensive than a "reducing 8%" loan — always compare on a reducing-balance basis.
Tips to reduce your EMI burden
- Prepay when you can. Even one extra EMI a year meaningfully shortens the tenure and cuts total interest. See Prepay Loan vs Invest to decide if that's the best use of spare cash.
- Negotiate or refinance the rate. A 0.5% lower rate on a large, long loan saves lakhs.
- Pick a shorter tenure if the higher EMI is affordable.
- Make a larger down payment to borrow less in the first place.
Related tools
- Rent vs Buy — whether taking on that EMI beats renting.
- Prepay Loan vs Invest — should extra cash go to the loan or the market?
- EPF Calculator — project your retirement savings.
Frequently asked questions
Does a longer tenure reduce my EMI?
Yes — a longer tenure lowers the monthly EMI, but you pay much more total interest over the life of the loan. A shorter tenure costs more each month but far less overall.
What's the difference between reducing-balance and flat interest?
Reducing-balance charges interest only on the outstanding balance, so it falls as you repay. Flat-rate loans charge interest on the full principal throughout and are effectively much more expensive for the same quoted rate.
How can I reduce the total interest I pay?
Choose a shorter tenure, make a larger down payment, negotiate a lower rate, and prepay when you have spare cash. Each reduces either the principal or the time interest accrues.
Does prepaying reduce my EMI or tenure?
By default most lenders reduce the tenure and keep the EMI the same, which saves the most interest. You can usually ask to lower the EMI instead if you prefer smaller monthly payments.
Are my numbers stored anywhere?
No. The calculation runs entirely in your browser — nothing is sent to a server.