Calculate monthly Equated Monthly Installment (EMI), total interest burden, and loan amortization.
Adjust numerical values below or drag sliders to recalculate trajectory in real time.
Principal sum borrowed from the bank or housing finance company.
Annual interest rate charged on reducing balance.
Repayment schedule duration in years.
Interactive visual breakdown of principal repaid vs. cumulative interest paid over time.
Comprehensive guide covering foundational concepts, regulatory rules, and advanced strategies.
Equated Monthly Installment (EMI) is a fixed payment made by a borrower to a lender on a specified date each month. Every EMI contains two components: interest charges on the outstanding principal, and principal repayment. Although your monthly installment stays identical every month, the internal split between interest and principal shifts dramatically over the loan life.
Because interest is calculated on the outstanding balance, long-tenure home loans (20-30 years) exhibit extreme interest front-loading. On a ₹50 Lakh loan at 8.5% for 20 years, your total interest payable is ₹54.1 Lakhs—more than the borrowed principal! However, making even 1 extra EMI payment per year as a principal prepayment cuts the loan tenure from 20 years down to ~15.5 years, saving nearly ₹14 Lakhs in pure interest.