Calculate your loan EMI for home, car, or personal loans
₹0
0.0%
Interest on Principal
₹0
Monthly EMI
| Year | Total EMI Paid | Principal Paid | Interest Paid | Outstanding Balance |
|---|---|---|---|---|
| Year 1 | ₹0 | -₹88,391 | ₹88,391 | ₹10,88,391 |
| Year 2 | ₹0 | -₹96,204 | ₹96,204 | ₹11,84,595 |
| Year 3 | ₹0 | -₹1,04,707 | ₹1,04,707 | ₹12,89,302 |
| Year 4 | ₹0 | -₹1,13,963 | ₹1,13,963 | ₹14,03,265 |
| Year 5 | ₹0 | -₹1,24,036 | ₹1,24,036 | ₹15,27,301 |
| Year 6 | ₹0 | -₹1,34,999 | ₹1,34,999 | ₹16,62,300 |
| Year 7 | ₹0 | -₹1,46,932 | ₹1,46,932 | ₹18,09,232 |
| Year 8 | ₹0 | -₹1,59,920 | ₹1,59,920 | ₹19,69,152 |
| Year 9 | ₹0 | -₹1,74,055 | ₹1,74,055 | ₹21,43,207 |
| Year 10 | ₹0 | -₹1,89,440 | ₹1,89,440 | ₹23,32,647 |
| Year 11 | ₹0 | -₹2,06,185 | ₹2,06,185 | ₹25,38,832 |
| Year 12 | ₹0 | -₹2,24,410 | ₹2,24,410 | ₹27,63,242 |
| Year 13 | ₹0 | -₹2,44,245 | ₹2,44,245 | ₹30,07,487 |
| Year 14 | ₹0 | -₹2,65,834 | ₹2,65,834 | ₹32,73,321 |
| Year 15 | ₹0 | -₹2,89,332 | ₹2,89,332 | ₹35,62,653 |
| Year 16 | ₹0 | -₹3,14,906 | ₹3,14,906 | ₹38,77,559 |
| Year 17 | ₹0 | -₹3,42,741 | ₹3,42,741 | ₹42,20,300 |
| Year 18 | ₹0 | -₹3,73,036 | ₹3,73,036 | ₹45,93,337 |
| Year 19 | ₹0 | -₹4,06,009 | ₹4,06,009 | ₹49,99,346 |
| Year 20 | ₹0 | -₹4,41,897 | ₹4,41,897 | ₹54,41,243 |
* In early years, interest forms a larger portion of EMI. Principal repayment increases over time.
See how making a one-time prepayment after 1 year can reduce your total interest burden
| Prepayment Amount | New EMI | Total Payment | Interest Savings |
|---|---|---|---|
| ₹50,000 | ₹9,194 | ₹21,46,320 | -₹21,46,320 |
| ₹1,00,000 | ₹8,752 | ₹20,95,379 | -₹20,95,379 |
| ₹2,00,000 | ₹7,866 | ₹19,93,498 | -₹19,93,498 |
| ₹5,00,000 | ₹5,210 | ₹16,87,853 | -₹16,87,853 |
* Prepayment made after 12 months. EMI reduced to maintain same tenure. Actual savings may vary based on lender's terms.
| Loan Tenure | Monthly EMI | Total Interest | Total Payment |
|---|---|---|---|
| 5 years | ₹20,517 | ₹2,30,992 | ₹12,30,992 |
| 10 years | ₹12,399 | ₹4,87,828 | ₹14,87,828 |
| 15 years | ₹9,847 | ₹7,72,531 | ₹17,72,531 |
| 20 years | ₹8,678 | ₹10,82,776 | ₹20,82,776 |
| 25 years | ₹8,052 | ₹14,15,681 | ₹24,15,681 |
| 30 years | ₹7,689 | ₹17,68,089 | ₹27,68,089 |
Key Insight: Shorter tenure means higher EMI but significantly lower total interest. Longer tenure reduces monthly burden but increases overall cost. Choose based on your cash flow capacity.
| Interest Rate | Monthly EMI | Total Interest | EMI Difference |
|---|---|---|---|
| 7% p.a. | ₹7,753 | ₹8,60,717 | +₹7,753 |
| 7.5% p.a. | ₹8,056 | ₹9,33,424 | +₹8,056 |
| 8% p.a. | ₹8,364 | ₹10,07,456 | +₹8,364 |
| 8.5% p.a. | ₹8,678 | ₹10,82,776 | +₹8,678 |
| 9% p.a. | ₹8,997 | ₹11,59,342 | +₹8,997 |
| 9.5% p.a. | ₹9,321 | ₹12,37,115 | +₹9,321 |
| 10% p.a. | ₹9,650 | ₹13,16,052 | +₹9,650 |
| 10.5% p.a. | ₹9,984 | ₹13,96,112 | +₹9,984 |
| 11% p.a. | ₹10,322 | ₹14,77,252 | +₹10,322 |
* Current selection highlighted. Even 0.5% difference in rate can significantly impact EMI over long tenures.
| Loan Type | Typical Rate | Monthly EMI | Total Interest | Tax Benefits |
|---|---|---|---|---|
Home Loan 80C (principal) + 24(b) (interest) | 8.5% | ₹8,678 | ₹10,82,776 | Yes ✓ |
Car Loan No tax benefits for personal use | 9.5% | ₹9,321 | ₹12,37,115 | No |
Personal Loan Unsecured, higher interest rate | 11.5% | ₹10,664 | ₹15,59,431 | No |
Education Loan Interest deduction under 80E | 9% | ₹8,997 | ₹11,59,342 | Yes ✓ |
EMI (Equated Monthly Installment) is a fixed payment amount that a borrower pays to a lender at a specified date each calendar month. EMIs are used to pay off both the principal and interest on a loan over a specific number of years.
The unique feature of EMI is that while the total monthly payment remains constant, the composition changes over time. In the early years, a larger portion goes toward interest, while in later years, more goes toward principal repayment.
EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]
Where:
Example Calculation:
For a loan of ₹10,00,000 at 8.5% for 20 years:
In the initial years, interest forms the major component of your EMI. As the loan progresses, the principal component increases while interest decreases.
Section 80E: Interest paid on education loan is fully deductible from taxable income.
| Component | Amount | Tax Saved (30%) |
|---|---|---|
| Principal (80C) | ₹1,50,000 | ₹45,000 |
| Interest (24b) | ₹2,00,000 | ₹60,000 |
| Total Tax Benefit | ₹3,50,000 | ₹1,05,000 |
Lower monthly burden
Become debt-free faster
Banks approve based on income, but you should consider all expenses. EMI shouldn't exceed 40-50% of take-home income. Leave room for emergencies, savings, and lifestyle expenses.
Processing fees (0.5-2% of loan), GST, documentation charges add up. A ₹10L loan can cost ₹15-30K upfront. Factor these in total cost when comparing lenders.
Some loans have prepayment penalties (2-5% of outstanding). Floating rate loans typically don't have penalties, but fixed rate loans do. Check before committing.
While lower EMI seems attractive, you pay significantly more interest. 30-year loan costs nearly double vs 15-year. Opt for shortest tenure you can afford.
Late payment charges are hefty (2-3% of EMI). More importantly, it damages credit score (CIBIL), making future loans expensive or rejected. Set up auto-debit.
For home loans, claim both 80C (principal) and 24(b) (interest). Many borrowers miss submitting documents to employer for TDS adjustment, losing monthly cash flow benefit.
Fixed rates are 0.5-1% higher but protect from rate hikes. Floating rates benefit when rates fall. For long tenures, floating usually works better over time.
If rates drop significantly, consider refinancing. If income improves, increase EMI or prepay. Annual review helps optimize loan structure based on changed circumstances.
20-30% down payment reduces loan amount, lowering EMI and total interest. Also helps avoid PMI charges and may get better interest rate from lender.
Prepayment in first 5 years saves maximum interest as most EMI goes to interest then. Even ₹50K/year prepayment can reduce tenure by 3-5 years.
Some loans allow EMI increase annually matching salary hikes. Start with lower EMI, increase gradually. Reduces total tenure and interest without upfront burden.
Don't prepay if you can earn higher post-tax returns elsewhere. If loan rate is 8% and you can earn 12% in equity, better to invest than prepay.
Good credit score (750+) gets you 0.5-1% lower rate. Pay EMIs on time, keep credit utilization below 30%, don't apply for multiple loans together.
Shop around across banks. Use competing offers to negotiate. Existing customers can request rate reduction citing better offers elsewhere.
Don't bundle credit protection insurance with loan. Buy separate term insurance - costs less and offers better coverage. Insurance bundled in loan is expensive.
Calculate affordability before applying. Check if EMI fits comfortably in budget after all expenses. Don't stretch to maximum approved amount.
EMI = Principal + Interest. In early years, interest forms major portion. Over time, principal component increases.
Lower EMI with longer tenure means paying significantly more interest. Balance monthly affordability with total cost.
Floating rate loans usually better for long tenures. Fixed rates protect against rate hikes but cost 0.5-1% more.
Home loan prepayment has no tax benefit. But prepaying reduces future interest burden and becomes debt-free early.
Missing even one EMI payment impacts CIBIL score. Set up auto-debit and maintain sufficient balance in bank account.
Processing fees, legal charges, valuation fees add 1-3% to loan amount. Factor in when calculating affordability.
Home loan interest tax benefit (Section 24b) available only from possession year, not construction period.
Balance transfer to another bank makes sense if rate difference is 1%+ and remaining tenure is 5+ years.
EMI to income ratio shouldn't exceed 50%. Maintain emergency fund of 6-12 months expenses despite loan EMI.
Some banks allow EMI holidays during construction or education period. Check if available and opt if needed.
Disclaimer: This calculator provides estimated EMI values for educational and planning purposes only. Actual EMI may vary based on lender's terms, processing fees, GST, and other charges. Interest rates are indicative and subject to change based on market conditions and lender policies. Prepayment terms, penalties, and tax benefits vary by loan type and lender. Please verify all details with your lender and consult a financial advisor before making loan decisions. Tax benefits are subject to applicable tax laws and individual circumstances.