EMI Calculator

EMI stands for Equated Monthly Instalment — a fixed amount you pay your lender every month until the loan is cleared. Each payment covers the interest accrued that month, and whatever remains reduces the outstanding principal. The amount stays the same throughout, but the split between interest and principal shifts steadily towards principal.

No — it only makes each month cheaper. Stretching a loan lowers the EMI because the principal is spread over more months, but you pay interest for longer, so the total cost rises. Doubling a tenure can easily more than double the interest you hand over. Use the shortest tenure whose EMI you can comfortably afford.

Interest is charged on the outstanding balance, which is at its highest at the start. In the first year of a 20-year home loan, well over half of each instalment typically goes to interest. As the balance falls the interest portion shrinks, and in the final years almost the entire instalment reduces the principal.

On a floating-rate loan, yes. Most Indian lenders keep the EMI unchanged and extend or shorten the tenure instead, though they may revise the EMI if the tenure cannot absorb the change. On a fixed-rate loan the EMI stays put for the agreed fixed period. This calculator assumes the rate holds for the whole tenure.

A prepayment goes straight against the principal, so every rupee of interest that balance would have generated for the rest of the tenure disappears. Prepaying early has a far bigger effect than prepaying late, because there are more months of interest left to cancel. Check whether your lender charges a prepayment penalty first.

The instalment itself will match, since every lender uses the same reducing-balance formula. What this calculator cannot include are processing fees, insurance premiums, GST on charges, or a part-month of interest between disbursal and your first due date. Treat the result as accurate for the loan itself and expect small extras on top.