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EMI Calculator
Break down loan EMI, total interest, and total repayment.
Monthly EMI
₹22,493
Total Interest
₹28,98,356
Total Payment
₹53,98,356
How it works
EMI (Equated Monthly Instalment) is the fixed payment you make each month on a loan. Every EMI has two parts — interest on the outstanding principal and repayment of principal. Early EMIs are almost all interest; later EMIs are almost all principal.
The formula
EMI = [P × r × (1 + r)^n] / [(1 + r)^n − 1]- P
- Loan principal amount
- r
- Monthly interest rate = annual ÷ 12 ÷ 100
- n
- Loan tenure in months
Worked example
₹25 lakh home loan at 9% for 20 years → EMI ≈ ₹22,493. Total repayment ≈ ₹54 lakh; interest paid ≈ ₹29 lakh — more than the loan itself.
Pro tips
- Every extra ₹1 you prepay in year 1 saves ~₹2 of interest by year 20.
- A shorter tenure raises EMI slightly but slashes total interest dramatically.
- Prefer floating rate for home loans in a falling-rate cycle; fixed for personal loans.
- Home-loan interest gets Section 24(b) deduction up to ₹2L; principal gets 80C up to ₹1.5L (old tax regime).
Common mistakes
- Choosing the longest tenure to lower EMI without comparing lifetime interest.
- Ignoring processing fees, GST, prepayment charges — the real cost is APR, not just rate.
- Taking a personal loan (12–18%) to prepay a home loan (~9%) — this raises your effective cost.
Go deeper
Related lessons
Concepts to explore
Reducing vs flat interestAPR vs interest rateMCLR / EBLR
Results are illustrative and do not include taxes, fees, or slippage. This is educational content — not investment, tax, or legal advice.