Calculate your home, car or personal loan EMI, then see how prepaying a little extra saves lakhs in interest and years of repayment.
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See how much interest and time you save by paying extra towards the principal.
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Illustration only. Banks may round EMIs differently, and floating-rate loans change when the lender revises its rate. Always confirm with your lender's sanction letter.
For a reducing-balance loan the EMI is:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. In every instalment, the interest on the outstanding balance is paid first and the rest reduces the principal — so early EMIs are mostly interest and later ones mostly principal.
Example: a ₹50 lakh home loan at 8.5% for 20 years has an EMI of about ₹43,391, and you pay roughly ₹54.1 lakh as interest over the full tenure.
Every rupee you prepay goes straight to the principal, so future interest is calculated on a smaller balance. If you keep your EMI the same, the loan closes earlier and you save interest; if you ask the lender to reduce the EMI instead, the tenure stays the same but you pay less each month. Prepaying early in the loan saves the most, because that is when the balance (and the interest) is highest.
Check with your lender for prepayment charges: floating-rate home loans taken by individuals in India usually have none under RBI rules, but fixed-rate and business loans may.
Usually within a rupee or two. Banks use the same reducing-balance formula; small differences come from rounding, the exact disbursal date, broken-period interest and any rate changes on floating loans.
Reducing tenure normally saves more total interest because you keep paying the higher EMI. Reducing the EMI gives monthly relief but saves less interest overall. Choose based on whether your goal is to be debt-free sooner or to ease your monthly budget.
Yes. Any loan repaid in equal monthly instalments on a reducing balance works — home, car, personal, education or gold loans. Use the presets as a starting point. Note that "flat-rate" quotes are different: a flat rate of 7% is much more expensive than a 7% reducing-balance rate.
Interest for a month = outstanding balance × monthly rate. The rest of the EMI repays principal. Open the repayment schedule above to see this split for every month or year.
No. All calculations happen in your browser and nothing you enter is sent to our servers.
You can model loans up to 40 years (480 months) and large amounts, with interest rates from 0% to 60%. A 0% rate simply divides the principal equally.