Loan EMI Calculator
Calculate EMI for home, car, and personal loans. Model prepayments to see exact interest savings and floating rate scenarios.
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Understanding EMI & Amortization
Your EMI is determined by three factors: principal, interest rate, and tenure. The standard formula is EMI = P × r × (1+r)^n / ((1+r)^n - 1). What most banks don't show you is the full amortization breakdown — in the early years of a 20-year home loan, over 80% of each EMI goes toward interest, not principal. This calculator surfaces that detail month by month.
A lump sum prepayment in Year 1 or 2 directly attacks your principal, collapsing the interest curve for every subsequent month. On a ₹50L home loan at 9%, a ₹3L prepayment in Year 2 can cut your total interest by over ₹8L and reduce tenure by 2+ years. Model any prepayment amount here to see the exact savings before you commit.
Fixed-rate loans lock in your EMI regardless of RBI repo rate changes. Floating-rate loans (most home loans in India) adjust when your bank resets the rate. A 1% rate hike on a ₹50L, 20-year loan adds roughly ₹3,000 to your monthly EMI. Use the floating rate simulator here to budget for rate movement before it catches you off guard.
The amortization table shows opening balance, EMI, interest paid, principal recovered, and closing balance for every single month of your loan. Use it to identify the optimal window for prepayment — the earlier you prepay, the greater the interest saving because the outstanding principal is highest at the start.
Prepayment Scenarios: How Much You Actually Save
Worked examples on a ₹50 lakh home loan at 9% interest for 20 years (base EMI ₹44,986, total interest ₹57.96 lakh). Run your own numbers in the calculator above.
| Prepayment | When | Tenure cut | Interest saved |
|---|---|---|---|
| ₹2,00,000 once | Year 2 | ~13 months | ₹5.7 lakh |
| ₹5,00,000 once | Year 3 | ~31 months | ₹13.4 lakh |
| ₹1,00,000 yearly | Years 1-10 | ~58 months | ₹19.2 lakh |
| EMI + 10% extra | Every month | ~46 months | ₹15.8 lakh |
Earlier prepayments save more because the outstanding principal — and therefore the daily interest you are charged — is highest at the start of the loan.
Floating Rate Stress Test
If the RBI repo rate moves and your bank resets your floating-rate home loan, your EMI changes. On a ₹50 lakh, 20-year loan starting at 9%:
- +0.5% rate hike (to 9.5%) adds roughly ₹1,540 to your monthly EMI.
- +1.0% rate hike (to 10%) adds roughly ₹3,065 — about ₹37,000 a year.
- +1.5% rate hike (to 10.5%) adds roughly ₹4,576, pushing total interest above ₹70 lakh over the loan's life.
- −0.5% rate cut (to 8.5%) reduces your EMI by ~₹1,535 — ideal time to keep EMI fixed and shorten tenure instead.
Use the rate-change input above to model your bank's reset cycle (typically every 3 or 6 months for repo-linked loans).
Frequently Asked Questions
Enter a lump sum prepayment amount and the month you plan to pay it. The calculator instantly shows how many months are cut from your tenure and the total interest saved. You can add multiple prepayments to model your exact payoff plan.
Yes. Add a rate change at any month and the tool recalculates all subsequent EMIs and your revised payoff date. This lets you stress-test your budget against RBI rate hike scenarios before taking a floating-rate home or car loan.
It is a month-by-month table showing how each EMI splits between interest and principal repayment. Early EMIs are mostly interest; later ones are mostly principal. Studying it helps you time prepayments for maximum impact.