— Loans & Debt
EMI Calculator
Find your equated monthly instalment and see, at a glance, how much of it goes to interest versus paying down the loan.
EMI (monthly payment)
₹21,695.58
- Principal (loan amount)
- ₹2,500,000
- Total interest payable
- ₹2,706,939.40
- Total payment
- ₹5,206,939.40
- Interest share of payments
- 51.99%
— Yearly breakup
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| Year 1 | ₹49,755.73 | ₹210,591.24 | ₹2,450,244.27 |
| Year 2 | ₹54,153.68 | ₹206,193.29 | ₹2,396,090.59 |
| Year 3 | ₹58,940.38 | ₹201,406.59 | ₹2,337,150.21 |
| Year 4 | ₹64,150.17 | ₹196,196.8 | ₹2,273,000.04 |
| Year 5 | ₹69,820.46 | ₹190,526.51 | ₹2,203,179.58 |
| Year 6 | ₹75,991.96 | ₹184,355.01 | ₹2,127,187.62 |
| Year 7 | ₹82,708.95 | ₹177,638.02 | ₹2,044,478.67 |
| Year 8 | ₹90,019.67 | ₹170,327.3 | ₹1,954,459 |
| Year 9 | ₹97,976.59 | ₹162,370.38 | ₹1,856,482.4 |
| Year 10 | ₹106,636.83 | ₹153,710.14 | ₹1,749,845.57 |
| Year 11 | ₹116,062.56 | ₹144,284.41 | ₹1,633,783.01 |
| Year 12 | ₹126,321.43 | ₹134,025.54 | ₹1,507,461.58 |
| Year 13 | ₹137,487.1 | ₹122,859.87 | ₹1,369,974.48 |
| Year 14 | ₹149,639.71 | ₹110,707.26 | ₹1,220,334.77 |
| Year 15 | ₹162,866.5 | ₹97,480.47 | ₹1,057,468.27 |
| Year 16 | ₹177,262.42 | ₹83,084.55 | ₹880,205.85 |
| Year 17 | ₹192,930.8 | ₹67,416.17 | ₹687,275.05 |
| Year 18 | ₹209,984.13 | ₹50,362.84 | ₹477,290.92 |
| Year 19 | ₹228,544.82 | ₹31,802.15 | ₹248,746.1 |
| Year 20 | ₹248,746.1 | ₹11,600.87 | ₹0 |
— Principal vs interest
Download— How it works
EMI = P · i · (1 + i)ⁿ ÷ [(1 + i)ⁿ − 1], i = annual rate ÷ 12, n = months. Total interest = EMI × n − P.
What an EMI is
An EMI — equated monthly instalment — is the fixed amount you pay every month to repay a loan over its tenure. It stays the same throughout, but its make-up shifts: part covers the interest on the outstanding balance, and the rest reduces the principal. The breakup chart shows the headline split of your total payment between the two, and on a long loan the interest share is often startling — frequently close to half of everything you pay, or more.
The EMI depends on three things only: the loan amount, the interest rate, and the tenure. A longer tenure lowers the EMI but raises the total interest sharply; a higher rate does both. The calculator updates instantly so you can feel the trade-off.
Worked example — ₹25,00,000 at 8.5% over 20 years: EMI ≈ ₹21,696 a month. Total interest ≈ ₹27,07,000 — more than the amount borrowed. So a little over half of everything you repay is interest.
Cutting the interest: prepayment and step-up
Two levers shrink the interest dramatically. A prepayment — a recurring part-payment on top of the EMI — comes straight off the principal, so all future interest is charged on a smaller balance; the loan clears years early and the calculator shows the interest saved. A step-up EMI raises your instalment a little each year, which suits a rising salary and has a similar effect: the extra goes to principal and the loan finishes ahead of schedule.
Both work best early in the loan, when the balance — and the interest on it — is largest. A part-payment in year two is worth far more than the same amount in year fifteen.
Fees, moratorium and real value
A processing fee raises the true cost of borrowing; the calculator rolls it into the total cost and shows the effective rate (APR), which is higher than the quoted rate and the fair number for comparing loans. A moratorium — a no-payment period at the start, common on education loans — does not make the loan cheaper: interest keeps building and is added to the balance, so the EMI afterwards is higher and you repay a larger amount.
Finally, because money loses value over time, a fixed EMI costs less in real terms each year. Switch on an inflation rate to see the real value of your future payments in today’s money.
— Reader questions
How is EMI calculated?
From the loan amount (P), the monthly rate (i = annual rate ÷ 12) and the number of months (n): EMI = P·i·(1+i)ⁿ ÷ [(1+i)ⁿ − 1]. The same fixed amount is paid each month, with the interest portion shrinking and the principal portion growing over time.
Why is so much of my EMI interest?
Interest is charged on the outstanding balance, which is highest at the start, so early EMIs are mostly interest. On a long loan the total interest can exceed the amount borrowed — the breakup chart shows exactly what share of your payments it is.
How much does prepayment save?
Often a great deal. A part-payment reduces the principal directly, so every future month’s interest is lower and the loan clears early. Enter a monthly prepayment under Advanced options to see the interest saved and the revised tenure.
What is a step-up EMI?
An EMI that rises by a set percentage each year, designed to track a growing income. Because the increases go to principal, the loan clears sooner and the total interest falls — similar to making regular prepayments.
Does a moratorium make my loan cheaper?
No — it is a no-payment period, not a no-interest one. Interest accrues during the moratorium and is added to the balance, so you repay more overall and the EMI after the moratorium is higher. The calculator shows the interest added.
What does the effective rate (APR) include?
It folds the processing fee into the cost of the loan and expresses it as a true annual rate, higher than the headline rate. It is the right figure for comparing two loans that quote the same rate but charge different fees.