EMI calculator for home, car and personal loans
Work out your monthly instalment and total interest, then follow the lesson to see where your money goes each year.
| Year | Principal paid | Interest paid | Loan left |
|---|
Lesson: what your EMI is really paying for
- Take a typical home loan. ₹20 lakh at 8.5% for 20 years gives an EMI of about ₹17,356.
- Look at the first month. Interest for month one is ₹20 lakh × 8.5% ÷ 12 = ₹14,167. So of your ₹17,356 EMI, only about ₹3,190 reduces the loan.
- Add it all up. Over 20 years you pay about ₹41.66 lakh in total, so the interest alone is about ₹21.66 lakh, more than the loan itself.
- What changes the picture. A shorter tenure, a lower rate or part-prepayments early in the loan cut total interest the most, because early years carry the most interest. Use the table in the calculator to see this year by year.
Questions people ask
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the yearly interest rate ÷ 12 and n is the number of monthly instalments.
Why is most of my early EMI interest?
Interest is charged on the loan still outstanding. At the start that balance is highest, so most of the EMI goes to interest and little to principal. The split flips over time.
Does prepaying a loan help?
Prepaying reduces the outstanding balance, so future interest falls. Check your lender's prepayment terms; floating-rate home loans for individuals usually have no prepayment penalty under RBI rules.
Can I use this for car and personal loans?
Yes. The formula is the same for home, car, personal and education loans with fixed monthly instalments.
For education only. Your lender's actual EMI may differ slightly because of rounding and fees.