Calculate EMI (Equated Monthly Installment) for any loan type with our comprehensive calculator. Get detailed amortization schedule, total interest paid, and visual payment breakup. Plan your finances better with year-by-year analysis of principal and interest components.
For a home loan of ₹10,00,000 at 8.5% interest for 20 years with monthly payments, you will pay a total of ₹20,82,776.
The chart above shows how your payments are distributed between principal and interest each year. Notice how in the early years, a larger portion of your payment goes toward interest, while in later years, more goes toward paying down the principal.
| Payment No. | Payment Amount | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | ₹8,678 | ₹1,595 | ₹7,083 | ₹9,98,405 |
| 2 | ₹8,678 | ₹1,606 | ₹7,072 | ₹9,96,799 |
| 3 | ₹8,678 | ₹1,618 | ₹7,061 | ₹9,95,181 |
| 4 | ₹8,678 | ₹1,629 | ₹7,049 | ₹9,93,552 |
| 5 | ₹8,678 | ₹1,641 | ₹7,038 | ₹9,91,912 |
| 6 | ₹8,678 | ₹1,652 | ₹7,026 | ₹9,90,260 |
| 7 | ₹8,678 | ₹1,664 | ₹7,014 | ₹9,88,596 |
| 8 | ₹8,678 | ₹1,676 | ₹7,003 | ₹9,86,920 |
| 9 | ₹8,678 | ₹1,688 | ₹6,991 | ₹9,85,232 |
| 10 | ₹8,678 | ₹1,700 | ₹6,979 | ₹9,83,533 |
| 11 | ₹8,678 | ₹1,712 | ₹6,967 | ₹9,81,821 |
| 12 | ₹8,678 | ₹1,724 | ₹6,955 | ₹9,80,098 |
| ... showing first 12 payments of 240 ... | ||||
This amortization schedule shows the breakdown of each payment, how much goes toward principal vs. interest, and your remaining loan balance after each payment.
EMI stands for Equated Monthly Installment, which is a fixed amount paid by the borrower to the lender each month. The EMI consists of two components: principal repayment and interest payment.
The EMI is calculated using the formula:
Where:
When you make a loan prepayment, you have two options: reduce the EMI amount while keeping the loan term the same, or keep the EMI the same but reduce the loan tenure. Prepayment helps save on interest costs significantly, especially if done in the early years of the loan when the interest component is higher.
In the early years of your loan, a larger portion of your EMI goes toward interest because the outstanding principal amount is higher. As you continue making payments, the principal amount reduces, resulting in lower interest payments and more of your EMI going toward principal repayment.
A longer loan tenure results in lower EMIs but higher total interest payments over the life of the loan. A shorter tenure means higher EMIs but less total interest paid. Choose based on your cash flow needs and financial goals. If affordability is a concern, opt for a longer tenure; if you want to save on interest, choose a shorter one.
For floating-rate loans, when interest rates change, either your EMI amount or your loan tenure can change, depending on your lender's policy. An increase in interest rates can either increase your EMI or extend your loan tenure, while a decrease can either reduce your EMI or shorten your loan tenure.
In a flat interest rate, interest is calculated on the initial loan amount throughout the loan tenure, resulting in higher effective interest. In a reducing balance method (which most banks use), interest is calculated on the outstanding loan balance, which decreases with each EMI payment, resulting in lower effective interest.