Know your EMI, and then the two decisions that change what a loan really costs. Should a part-prepayment cut your tenure or your EMI? And when a floating rate rises, should you accept a longer loan or a higher EMI? Enter the loan once and see the EMI, total interest, both decisions side by side in rupees and months, and a year-by-year breakdown.
How to use it
- Enter the loan amount in rupees.
- Enter the yearly interest rate your bank quotes, for example 8.5.
- Enter the tenure in years or months.
- Read your EMI, total interest and total payment.
- Under Prepay and save, enter a prepayment to compare reducing the tenure with reducing the EMI.
- Under If your rate changes, enter a new rate to see the cost of a longer loan against a higher EMI.
Options explained
How EMI is calculated
The standard reducing-balance formula banks use: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r the monthly rate (yearly rate ÷ 12 ÷ 100) and n the number of months.
Prepay and save
A one-time prepayment at the end of a year, and an optional extra amount every year. The table shows when the loan ends, the EMI and the interest saved if the bank reduces your tenure, or reduces your EMI instead.
If your rate changes
For floating-rate loans. Many banks keep the EMI the same when rates rise and make the loan longer. The table compares that with paying a higher EMI and finishing on time, and warns when the old EMI would no longer cover the interest at all.
Year by year
Each EMI pays the interest due that month, and the rest reduces the loan. Early years are mostly interest; later years mostly principal.
Example
- Input: ₹10,00,000 at 10% a year for 10 years
- Settings: 120 monthly instalments
- Result: EMI of ₹13,215; total interest about ₹5,85,809
Limits and troubleshooting
- Assumes a fixed rate for the whole tenure. Floating-rate loans change their EMI or tenure when the rate changes.
- Processing fees, insurance and prepayment charges are not included; ask your bank for the full cost.
- Banks may round the EMI or calculate the first and last instalments slightly differently, so their figure can differ by a few rupees.
Questions
Should I choose a longer tenure for a lower EMI?
A longer tenure lowers the EMI but raises the total interest considerably. Compare the total interest figure for both tenures before deciding.
Should a prepayment reduce my tenure or my EMI?
Reducing the tenure saves more interest, because the full EMI keeps paying the loan down. Reducing the EMI eases your monthly budget instead. Enter your prepayment under Prepay and save to see the difference in rupees. RBI does not allow prepayment charges on floating-rate home loans taken by individuals; check your terms for other loans.
My bank increased my tenure after a rate hike. What does that cost?
Enter your loan and the new rate under If your rate changes. It shows how much longer the loan runs and how much extra interest you pay, compared with raising the EMI. You can ask your bank to raise the EMI instead.
Is my data saved anywhere?
No. The calculation runs in your browser; nothing you enter is sent anywhere.