EMI Calculator

Reading your result like a banker

The EMI is the headline, but the total interest is the real price of the loan: on a 20-year home loan it often rivals the principal itself. The amortization table shows why: early EMIs are mostly interest because interest accrues on the full outstanding balance. That's also why prepayments early in the tenure save dramatically more than the same amount paid later, and why comparing two tenures side by side (run the calculator twice) is the fastest way to see what a shorter loan really costs per month versus what it saves overall.

The formula, for the curious

EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is principal, r the monthly rate (annual ÷ 12 ÷ 100) and n the months. Every bank's calculator, and this one, uses exactly this reducing-balance formula, so the numbers here will match your sanction letter.

Frequently asked questions

How is EMI calculated?

EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r the monthly interest rate (annual ÷ 12 ÷ 100) and n the number of months. This calculator applies exactly that formula.

Why is early-tenure EMI mostly interest?

Interest is charged on the outstanding balance, which is largest at the start. As the principal reduces, more of each EMI goes toward principal; the amortization table below shows the shift month by month.

Does a shorter tenure always save money?

Yes in total interest, but the monthly EMI rises. Compare a couple of tenures here to find the balance your cash flow can handle.

Is this accurate for home loans with floating rates?

It's exact for the current rate. If your rate changes later, recalculate with the new rate on the remaining principal and tenure.

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