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EMI Calculator — Home & Personal Loan EMI + Prepayment Lab

Enter your loan amount, interest rate and tenure for an instant EMI, total interest and total payable — then use the prepayment lab to see exactly how much an extra monthly payment saves. 100% private — everything is computed in your browser.

Your loan

Reducing-balance rate, as quoted by most lenders.
Paid on top of your EMI every month. Try ₹5,000 and watch the lab below.

Your EMI breakdown

Monthly EMI
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Total interest
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Total payable
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    Year-by-year repayment schedule

    Prepayment labLIVE

    With your extra ₹0/month on top of the EMI:

    Without prepayment

    Loan cleared in
    –
    Total interest
    –

    With prepayment

    Loan cleared in
    –
    Total interest
    –
    Interest saved
    –
    Time saved
    –
    Interest saved

    How EMI actually works

    An EMI (equated monthly instalment) is the fixed amount you pay every month so that your loan — principal plus all interest — is exactly cleared by the end of the tenure. The lender computes it with one formula:

    Here P is the loan amount, i is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly payments. The formula is derived so that the present value of all n payments equals P — every EMI is identical, but what happens inside each EMI changes every month.

    Interest is charged on the reducing balance: each month's interest = outstanding principal × monthly rate. Because the EMI is fixed and interest is highest when the balance is highest, the early years are interest-heavy — in the first year of a long home loan, well over half of each EMI can be pure interest, with only a sliver reducing the principal. As the balance shrinks, the interest slice shrinks and the principal slice grows, crossing over somewhere mid-tenure.

    That crossover is exactly why prepayment is so powerful. An extra payment goes entirely toward the principal (after that month's interest is covered). A smaller principal means less interest next month, which means more of the next EMI hits principal too — a compounding snowball in your favour. Extra payments made early in the tenure save far more than the same amount paid later, because they kill the balance while it is still large and interest-heavy. The prepayment lab above simulates this month by month, so the savings you see are exact for your inputs.

    Worked examples

    Example 1 — ₹50,00,000 home loan @ 8.5% p.a. for 20 years

    Monthly rate i = 8.5 ÷ 12 ÷ 100 = 0.0070833; n = 240 payments.
    EMI = 50,00,000 × 0.0070833 × (1.0070833)240 ÷ ((1.0070833)240 − 1) = ₹43,391 per month.

    FigureAmount
    Monthly EMI₹43,391
    Total payable (₹43,391 × 240)₹1,04,13,879
    Total interest (payable − principal)₹54,13,879

    Notice: the interest (₹54.14 lakh) exceeds the loan itself — that is the cost of borrowing ₹50 lakh for 20 years at 8.5%.

    Example 2 — same loan, plus ₹5,000/month extra prepayment

    EMI stays ₹43,391, but ₹48,391 leaves your account each month, with the extra ₹5,000 attacking principal directly. Simulated month by month:

    FigureAmount
    Loan cleared in187 months (15 years 7 months)
    Time saved53 months — 4 years 5 months
    Total interest with prepayment₹40,24,629
    Interest saved₹13,89,250 (≈ ₹13.89 lakh)

    ₹5,000/month extra costs about ₹9.35 lakh in additional payments over the shortened tenure — and wipes out ₹13.89 lakh of interest. That is the prepayment snowball at work.

    Frequently asked questions

    Is my EMI the same every month?
    Yes, for a fixed-rate loan the EMI amount never changes. What changes is the split inside it: early EMIs are mostly interest, later EMIs are mostly principal. With a floating rate, the lender may change your EMI or your tenure when rates move.
    Fixed vs floating interest rate — which is better?
    A fixed rate locks your EMI for the whole tenure — predictable, but usually priced slightly higher. A floating rate moves with the market: your EMI or tenure can rise or fall. This calculator assumes a fixed rate; if you have a floating loan, re-run it whenever your rate changes. We don't quote current bank rates here — check your lender's schedule.
    Does a prepayment reduce my EMI or my tenure?
    It depends on your lender's policy and what you choose. This calculator assumes the EMI stays the same and the tenure shrinks (loan ends sooner) — that saves the maximum interest. Some lenders instead keep the tenure and reduce your EMI, which saves less. Ask your lender which option applies before you prepay.
    What saves more — reducing tenure or reducing EMI after a prepayment?
    Reducing tenure saves more, always. A shorter loan means fewer months of interest accrual on the balance. Reducing the EMI instead stretches the same interest over the full original tenure, so you keep paying interest longer.
    Are there prepayment or foreclosure charges?
    They vary by lender and loan type — some loans carry a penalty for early repayment, others don't. Check your loan agreement for the exact terms, because any charge eats into the savings shown here. This calculator excludes all such charges.
    Are processing fees, GST and insurance included in this calculation?
    No. Processing fees, documentation charges, GST on fees, and loan insurance are real costs but are not part of the EMI formula, so they're excluded here. Add them mentally to the "total payable" figure for the true cost of the loan.
    Why is most of my early EMI just interest?
    Because interest is charged on the outstanding balance, which is at its highest in the early years. With a fixed EMI, the interest portion is largest when the balance is largest, leaving little for principal. As the balance falls, the interest slice shrinks and the principal slice grows — the yearly schedule above shows this crossover.
    What happens if interest rates change during my tenure?
    On a floating-rate loan, a rate hike usually extends your tenure (or raises your EMI); a cut shortens it. Your original EMI figure no longer applies — re-run this calculator with the new rate and remaining balance to see the updated picture.
    Disclaimer: This is an estimate for illustration, computed in your browser — no data leaves your device. Actual EMIs follow your lender's amortisation schedule and may differ due to processing fees, prepayment charges, rate resets, and rounding. We do not quote live bank rates. Verify with your lender before borrowing.