Monthly EMI₹26,034.70
Total interest₹32,48,327.28
Total payment₹62,48,327.28
Year-by-year repayment| Year | Principal paid | Interest paid | Balance |
|---|
| 1 | ₹59,706.88 | ₹2,52,709.49 | ₹29,40,293.12 |
| 2 | ₹64,984.42 | ₹2,47,431.94 | ₹28,75,308.70 |
| 3 | ₹70,728.45 | ₹2,41,687.91 | ₹28,04,580.25 |
| 4 | ₹76,980.20 | ₹2,35,436.16 | ₹27,27,600.05 |
| 5 | ₹83,784.55 | ₹2,28,631.81 | ₹26,43,815.49 |
| 6 | ₹91,190.35 | ₹2,21,226.02 | ₹25,52,625.15 |
| 7 | ₹99,250.74 | ₹2,13,165.62 | ₹24,53,374.40 |
| 8 | ₹1,08,023.61 | ₹2,04,392.76 | ₹23,45,350.79 |
| 9 | ₹1,17,571.91 | ₹1,94,844.45 | ₹22,27,778.88 |
| 10 | ₹1,27,964.20 | ₹1,84,452.16 | ₹20,99,814.68 |
| 11 | ₹1,39,275.07 | ₹1,73,141.29 | ₹19,60,539.61 |
| 12 | ₹1,51,585.72 | ₹1,60,830.64 | ₹18,08,953.89 |
| 13 | ₹1,64,984.52 | ₹1,47,431.84 | ₹16,43,969.37 |
| 14 | ₹1,79,567.65 | ₹1,32,848.71 | ₹14,64,401.72 |
| 15 | ₹1,95,439.80 | ₹1,16,976.57 | ₹12,68,961.92 |
| 16 | ₹2,12,714.90 | ₹99,701.46 | ₹10,56,247.02 |
| 17 | ₹2,31,516.96 | ₹80,899.40 | ₹8,24,730.06 |
| 18 | ₹2,51,980.96 | ₹60,435.41 | ₹5,72,749.10 |
| 19 | ₹2,74,253.78 | ₹38,162.58 | ₹2,98,495.32 |
| 20 | ₹2,98,495.32 | ₹13,921.04 | ₹0.00 |
Estimate for a fixed-rate loan with monthly payments. Floating-rate home loans change with the lender's benchmark rate, and processing fees, insurance and prepayments are not included.
The EMI formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. Each EMI is the same, but early EMIs are mostly interest and later EMIs are mostly principal.
Worked examples
A ₹30 lakh home loan at 8.5% for 20 years has an EMI of about ₹26,035; over 20 years you pay about ₹32.48 lakh in interest, more than the loan itself. A ₹10 lakh car loan at 9% for 5 years has an EMI of about ₹20,758 and total interest of about ₹2.46 lakh. A ₹5 lakh personal loan at 12% for 3 years has an EMI of about ₹16,607.
How tenure changes the cost
A longer tenure lowers the EMI but raises the total interest. The same ₹20 lakh at 8.5% costs about ₹19,695 a month over 15 years (₹15.45 lakh total interest); stretching it to 20 years lowers the EMI to about ₹17,356 but raises the total interest to about ₹21.66 lakh. Part-prepayments early in the loan save the most interest, because they reduce the balance on which interest is charged.
What the calculator does not include
It assumes a fixed rate and monthly payments. Floating-rate home loans change with the lender's benchmark, and processing fees, insurance and prepayment charges are not included. Your lender's sanction letter shows the exact figures.
Frequently asked questions
What is the EMI for a ₹30 lakh home loan?
At 8.5% for 20 years the EMI is about ₹26,035 per month. At a lower rate or a longer tenure it is lower; with a shorter tenure it is higher.
What is the EMI for ₹10 lakh for 5 years?
At 9% interest it is about ₹20,758 per month, with about ₹2.46 lakh of total interest.
Does a longer tenure save money?
No. It lowers the monthly EMI but increases the total interest paid over the life of the loan.
How is the monthly interest rate calculated?
Divide the annual rate by 12. An 8.5% annual rate is about 0.708% per month.